The council of the Nigerian Stock Exchange (NSE) has approved the regulatory delisting of nine moribund companies from the daily official list due to their persistent non compliance with post listing requirements.
The companies are: Capital Oil Plc, Union Dicon Salt Plc, Lennards Nigeria Plc West Africa Glass Industry Plc, Nigerian Wire Industries Plc, Aluminum Manufacturing Company of Nigeria Plc, Rokana Industries Plc, Hallmark Paper Products Plc , Nigerian Wire Industries Plc and Udeofson Garment Factory Nig Plc
The NSE had earlier suspended trading in the shares of these companies with effect from August 2, 2012.
Management of the NSE noted that the delisting of the moribund companies will commence three months from when notice was served to the company.
Chief Executive Officer of the NSE, Mr. Oscar Onyema explained that the NSE had adopted a proactive approach by calling on companies to understand the challenges they are facing; making them to go contrary to post-listing requirements.
He explained that the idea was to give companies all the support to comply with rules and to also allow the investors know the companies that are struggling by putting out symbols next to their names, adding “but at some point, if a company is not going to be able to turnaround or a company is just going to be there, then we have to get them delisted,”
It would be recalled that the NSE had in April 2012 unveiled a Report known as X-Compliance Report as part of its ongoing regulatory programme to enhance transparency and disclosure.
The X-Compliance Report also notifies the public when a company is embarking on capital reconstruction, delisting (whether voluntary or regulatory) or restructuring.
According to the NSE, it believes that the timely disclosure of financial information and on-going event disclosure is critical to stakeholders in the capital market as well as investors.