News Column

Delisting Is to Protect Shareholders Interest - NSE Boss

June 26, 2014

Kayode Ogunwale

The intention by the Nigerian Stock Exchange (NSE) to delist 16 companies has been described as a move by regulators to further protect investors' interest.

The Chief Executive Officer of the NSE, Oscar Onyema, stated this yesterday at the second quarter meeting of the Capital Market Committee (CMC) which was held in Lagos.

He said that the position of shareholders who criticise the exercise saying it was meant to emasculate their investments is erroneous as the exercise is a testimony of the exchange commitment to zero tolerance for non-compliance to post listing rules and requirements.

According to him, we do have continuing listing standards and we are simply enforcing the standards.

"The intention of the exchange is to indicate companies that are going to be delisted and not that we have delisted them. We put them on notice that we are very serious about enforcing post listing requirement of the exchange," he explained.

"I want to note that a number of shareholders said that we are not protecting their interest; in reality we are protecting them. I am making it very clear that you cannot be a listed company and stay for two or three years without providing your financial statement to the public. On what basis are they protesting," Onyema further said.

He added that the NSE, like any other exchange has every right to list and delist companies.

It will be recalled that the NSE has served notice to 21 companies planning to delist them for failing to file quarterly and annual financial statements as required under the listing rules.

The notice, which was advertised on Monday, said the quotation committee of the National Council of the NSE approved the delisting of the companies on Monday June, 2014.

Companies affected are, Daar Communications Plc, Big Treat Plc, Starcomms Plc and UTC Plc, IPWA Plc, Nigeria Wire and Cable Plc, Afroil Plc and Goldlink Insurance Plc. The notice read in part: "The quotation committee of the national council of the exchange, on Monday June 2, 2014, approved the delisting of some entities from the daily official list pursuant to the provisions of the Greenbok (Listing Rules) of the exchange, specifically, clause 15 of the general undertaking.

"The exchange has decided to delist these entities because of their failure to file quarterly and annual financial statements as required under the listing rules. This regulatory action is necessary in order to protect the investing public from trading in securities of entities with no current information regarding their financial status."

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Source: AllAfrica

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