By InvestAdvocate

Lagos (INVESTADVOCATE)-The Nigerian Stock Exchange (NSE) said in a Circular Tuesday that it will tomorrow May 16 2012 commence the sanctioning of defaulting Dealing Member Firms for non submission of their Quarterly Returns.

The Circular obtained by www.investadvocateng.com reads thus “Please be informed that the penalties set forth in the policy guideline (Policy No. 01 NSE) made pursuant to Article 15(h) of The Rules and Regulations Governing Dealing Members of The Exchange, which came into effect on 1 November 2011, will be implemented with respect to the March quarterly rendition which is due today (15th May 2012). This will be effective from tomorrow 16th May 2012”.

The NSE had Thursday May 10 2012 issued a reminder to all Dealing Member Firms that their Quarterly Returns for the Period Ended 31st March 2012 is due on 15th May 2012.

As earlier reported by www.investadvocateng.com, the NSE had warned Dealing Member Firms that fails to meet the May 15 2012 deadline will immediately be suspended from trading and would attract a penalty of N5, 000 per day of default.

“Please be informed that based on (Policy No.01 NSE) made pursuant to Article 15(h) of the Rules and Regulations Governing Dealing Member of The Exchange which came into effect on November 1 2011; that failure of a Dealing Member to submit Quarterly Returns on the due date shall attract a penalty of Five thousand Naira only (N5, 000) per day of default and the Dealing member shall be suspended from trading with effect from the first trading day after the due date” the NSE said.

However, the Nigeria’s Exchange advised the Dealing Members yet to comply to do so on or before the May 15 2012 due date to avoid regulatory action.

According to the NSE, the suspension from trading if applied can only be reversed on submission of the Quarterly Returns and payment of the N5, 000 daily penalty.

“Note that the suspension mentioned above if applied can only be vacated on the submission of the Quarterly Returns and payment of penalty for late submission” the Notice said.