By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE) – The Nigerian Stock Exchange (NSE) has unveiled a Report known as X-Compliance Report as part of its ongoing regulatory program to enhance transparency and disclosure.
The Report launched on its website on April 16, 2012 and obtained by www.investadvocateng.com has four (4) identification symbols that indicate the compliance status of listed entities.
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.
The NSE said consequently, Companies that miss their financial filing dates or contravene any of the provisions of the Post Listing Rules will have the symbol BLS (Below Listings Standard) appended to their name. The symbol remains in effect until the company regularises its compliance status.
Also, the symbol ARA (Awaiting Regulatory Approval) is appended to the names of companies that are awaiting primary regulator’s approval and have consequently missed their financial filing date. “The symbol remains until regulatory approval is obtained and financial information is released to the public†the NSE said.
The further affirmed that Companies undergoing a capital reconstruction exercise (a public offer or rights issues or share buyback) will have the symbol CRE appended to their names.
While those that have indicated that they will be delisting or companies that are being delisted at the instance of the Regulator pursuant to Clause 15 of Appendix III of the Post- Listing Rules, the symbol DIP (Delisting in Process) will be appended to their names.
As at April 16 2012, a list of 76 Quoted Companies was released on the Nigeria’s Exchange website for non-rendition of Audited Financial Statements 2011.
In the same vein, the Nigeria’s Exchange issued a notice of extended filling date to Quoted Companies that missed their financial filing date in respect of the 2011 Audited Accounts which was March 31, 2012.
“We are cognizant of the down time experienced at the beginning of the year arising from the fuel subsidy crisis and its impact on the business activities of our listed entities and gave all companies with December year end two weeks grace which elapsed on Friday, April 13, 2012†the NSE said.
The Exchange said its further exercising limited discretion by extending the filing date by another two weeks effective April 16, 2012 to April 27, 2012, for Companies to regularise their filings.
“During this period, we will forbear from imposing penalties. Penalties will be imposed on filings that are made after 12.00 p.m. on Monday April 30, 2012 .
“We believe that the timely disclosure of financial information is critical to stakeholders in the Capital Market as well as investors. Consequently, an appropriate symbol has been appended beside the names of default filers on our X-Compliance Report which we launched on our website on April 16, 2012; in addition to including this information on the daily market report with immediate effect. The symbol(s) will remain until the 2011 Audited Accounts are filed.
Please note however that the extended filing date does not in any way discharge affected companies from complying with the Disclosure of Non-compliance pursuant to Clause 14 (g) of Appendix III our Post- Listing Rules†the NSE said.
