The Nigerian Exchange Limited (NGX) has announced the suspension of trading on Presco Plc, Ardova Plc, C and I Leasing, Royal Exchange, International Energy Insurance, Pharma Deko, and Afromedia. These companies according to NGX have failed to comply with best corporate governance practices, specifically the submission of their audited financial results within the stipulated timeframe.
The suspension means that there will be no trading activity involving the shares of these companies, including any movement in share prices. The NGX decision was based on the companies’ failure to submit their audited financial results for the year ended December 31, 2022, as well as their unaudited results for the first quarter ended March 31, 2023.
Timely disclosure of financial information is crucial in the stock market, as it influences market operations and investor decisions. The suspension of these companies is in line with Rule 3.1 of the market, and it will remain in effect until they demonstrate compliance by submitting their required results.
Quoted companies are required to submit their audited financial results within 90 days after the end of the year, while unaudited quarterly results should be submitted within 30 days after the end of the quarter. Non-compliance with these deadlines can result in various sanctions, including suspension, delisting, or removal from the market.
Overall, the NGX’s decision to suspend trading with these companies underscores the importance of timely compliance with corporate governance regulations and the submission of financial results to ensure transparency and accountability in the market.