The management of the Nigerian Stock Exchange (NSE) today announced the suspension of trading in the shares of Conoil Plc over the company’s failure to file its financial accounts as stipulated in the rules of the exchange.
The Head, Listings Regulation Department of NSE, Godstime Iwenekhai, in a statement issued to announce the suspension which takes immediate effect, indicated that the company was suspended pursuant to Rule 3.1 of the rules for filing of accounts and treatment of default filing.
The rule provides that, “If an issuer fails to file the relevant accounts by the expiration of the cure period, the exchange will: send to the issuer a second filing deficiency notification within two business days after the end of the cure period; suspend trading in the issuer’s securities; and notify the Securities and Exchange Commission (SEC) and the market within twenty-four hours of the suspension.”
According to NSE, the suspension of the company would only be lifted upon the submission of the relevant accounts and provided the exchange is satisfied that the accounts comply with all applicable rules.
The share price of Conoil Plc had depreciated by 10 percent and 23.58 percent on Friday to close at N24.30 when compared with its price a week and three months earlier respectively.
Four weeks ago, the NSE had suspended trading in the shares of eight firms over similar matter. The suspended firms include; African Alliance Insurance Plc, Cornerstone Insurance Plc, R.T. Briscoe Plc, Royal Exchange Plc, STACO Insurance Plc, Standard Alliance Insurance Plc, Universal Insurance Company Plc, and Veritas Kapital Assurance Plc.
The suspension on the trading in the shares of the companies was, however, lifted last week following the submission of their full-year audited reports for the 2017 business year.
Suspension in the shares of a company implies investors and shareholders of the company would not be able to trade their equities, leaving the share price of the suspended stock unchanged.