Stakeholders task SEC, NSE over moribund companies


Gbenga Agbana


Worried by the non-compliance of some companies in the emerging markets sector of the Nigerian Stock Exchange with the post- listing requirements, stockbrokers and shareholders have urged the regulators to take necessary steps to enforce compliance.

To some shareholders, the companies, which are not complying with the requirements of the regulators should be delisted by the regulators.

The NSE had recently delisted some companies considered to be moribund.

Generally, the post-listing requirement of the NSE stipulates that the companies listed in the first tier segment of the equities sector must present their financials to the NSE at the end of every quarter, while those in the emerging markets or the second tier securities market are required to present theirs every six months.

An investigation conducted by our correspondent indicated that most of the companies in the emerging markets sector had not submitted their results in the last seven years, while some in the first tier securities market were also non-compliant.

Though it is not compulsory for companies to pay dividends, some of the companies involved have also not paid dividends to their shareholders in the last eight years.

Stockbrokers and shareholders, who spoke with our correspondent on the development, noted that it was a regulatory challenge, which must be tackled headlong.

For instance, the Managing Director of GTI Capital Limited, Mr. Abubakar Lawal, said, ”It is neither here nor there, but this is clearly a regulatory challenge.”

The Chairman, Ibadan Zone, Shareholders Association, Chief Aderemi Oyepeju said, ”All the companies that refuse to bring their results within five years should be delisted. That has been the lapse on the part of the NSE and the SEC.

“Those who want to go private should delist from the NSE like Incar Nigeria Plc did recently. I want the regulators to act fast to protect investors. The new administrator of the NSE should implement it as soon as possible.”

The National Co-ordinator of the Independent Shareholders Association of Nigeria, Chief Sunny Nwosu, said, “Before any company seeks listing on the NSE, it must get the approval of the SEC. The NSE is a self regulatory organisation. The SEC should ask the NSE to give a clue into what had happened to the companies.

“Already, they have failed to ask the companies to give explanations to the regulators and shareholders. If they want to delist, they should tell us.”


Source: The Punch





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