In 2022, six listed companies on the Nigerian Exchange Limited (NGX) violated various listing rules, including unauthorized publication and failure to disclose material information. The NGX X-Compliance report highlights that all listed companies must provide timely information to the exchange to facilitate the maintenance of an orderly market.
Living Trust Mortgage Bank Plc and AIICO Insurance Plc breached amendments to Chapter 17 of the information disclosure rules concerning closed periods, as well as the NGX issuers’ rules. Meanwhile, BUA Foods Plc was found to have violated the rule against unauthorized publication. United Bank for Africa Plc failed to comply with the provisions of Rule 1.1.5, which pertains to the filing of accounts and the treatment of default filings.
Additionally, Nigerian Exchange Group Plc and Ecobank Transnational Incorporated defaulted on Rule 19.2, which relates to the disclosure of board meetings and amendments to rules governing board and general meetings. They also breached the exchange process for filing financial statements. As a consequence, all six companies were mandated to undergo Mandatory Compliance Training.
NGX Regulation Limited emphasized in the report that, according to Appendix III: General Undertaking (Equities) of the NGX Rulebook 2015 (Issuers’ Rules) and NGX Circular No. NSE/LARD/LRD/CIR3/17/05/12 regarding the publication of announcements or press releases via the Issuers’ Portal, listed companies must obtain prior written approval from NGX RegCo before making any publications that could impact shareholders’ interests. Furthermore, companies are required to disclose material information to NGX and include such information in their Annual Reports.
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