By Richard ABANGWU InvestAdvocate
Lagos (INVESTADVOCATE)-The Nigerian Stock Exchange (NSE) Friday reported a 34 percent (34%) reduction in the number of Dealing Member firms that defaulted in their submission of quarterly renditions in 2012.
The report was contained in the 2012 Annual Reports & Accounts of the Nigeria’s Exchange and made available to InvestAdvocate at 52nd Annual General Meeting (AGM) of Members of the NSE held in Lagos Nigeria.
The Legal and Regulations Division of the NSE said in the area of compliance, it has achieved a 34% reduction in the number of firms who default in their submission of quarterly renditions in 2012 compared to 2011.
The NSE said the figure reduced from 90 in 2011 to 59 in 2012 end; indicating a reduction of 34% in the review period.
Penalties for violation of rules governing Dealing Members on rendition of financial statements (Article 15 (h)) stipulates that failure of a Dealing Member to submit Quarterly Returns on the date due for submission shall attract a penalty of 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.
Also, the Article states that failure of a Dealing Member to submit Audited Financial Statements on the date due for submission shall attract a penalty of N5, 000 per day of default for a maximum of four weeks.
According to the NSE, where a Dealing Member fails to submit Annual Financial Statement after four weeks of default, the Dealing Member firm shall forthwith be suspended from trading.
The NSE penalty on non-rendition of quarterly accounts says where a Dealing Member is suspended from trading under sub article (a) or (c), such suspension shall be lifted upon submission of the Quarterly Returns or Annual Financial Statements.
As at the time of filling in this report, the Broker Trax report which highlights the Dealing Member firms that contravene the rules and regulations of the NSE in their submission status for the quarter ended December 31 2012 as at April 22 2013, shows that 225 firms have submitted; while 37 are yet to do so.
Click here to download submission status for December 2012 as at April 2013
