NGX fines 16 firms N779m for market offences

The Nigerian Exchange Limited has sanctioned 16 companies for various market infractions in three years, according to findings by The PUNCH.

Specifically, the NGX imposed the sum of N779.5m fine on LASACO Assurance Plc, Presco Plc, Ardova Plc, C&I Leasing Plc, and 12 other listed companies on the bourse between 2020 and 2022.

The sanctions bothered on the failure of the companies to comply with some post-listing requirements of the Exchange, especially the prompt filing of results and accounts.

Fourteen of the companies were sanctioned N170.6m in 2022, while the NGX imposed N586m monetary sanctions on seven of them in 2021.  In 2020, three of the firms were sanctioned N22.9m.

The 14 companies fined in 2022 were ETI, FBN Holdings Plc, Union Bank of Nigeria Plc, Honeywell Flour Mills Plc, Unity Bank Plc, Presco Plc, Ardova Plc, C&I Leasing Plc, Coronation Insurance Plc, Royal Exchange Plc, PZ Cussons Nigeria Plc, LASACO Assurance Plc, Mutual Benefits Assurance Plc and Omatek Ventures Plc.

In 2022, the Exchange imposed N14.9m fine on Coronation Insurance, followed by N11.6m and N9.7m fines imposed on C & I Leasing and Ardova, respectively.

Presco was fined N5.1m by the management of the Exchange, while Honeywell Flour Mills was sanctioned N1.2m for not remitting third quarter 2021 result and accounts on the due date.

Financial institutions sanctioned included ETI which was fined N3.2m in 2022; FBN Holdings was fined  N8.1m; Union Bank of Nigeria, N1.2m; Fidelity Bank Plc was fined N1.6m in 2021 while Unity Bank Plc was sanctioned N4.2m.

Interestingly, the Exchange imposed N85.3m fine on Omatek Ventures in 2022. The Information  anc Communications Technology firm was also sanctioned N537.2m for failing to submit 2015-2018 audited result and accounts to the investing public.

Also, between 2020 and 2022, the Exchange sanctioned LASACO Assurance N29.2 for failing in some post-listing requirements.

The breakdown revealed LASACO Assurance was sanctioned N5.3m in 2022 for not submitting its 2021 audited financial statement to the investing public. Also, the firm was fined the sum of N15.1m in 2021 for not submitting first quarter 2021 and audited 2020 result and accounts.

LASACO Assurance was also penalised the sum of N8.8m in 2020 for not submitting audited 2019, first quarter 2020 and second quarter 2020 financial results.

Findings showed investors had shunned trading in the stocks of some of the affected companies.

Also, some of the firms especially Omatek Ventures have notified the Exchange of their delisting plans.

The Exchange in a statement stated that “The board of NGX RegCo approved the reclassification of the Omatek Ventures  from delisting watch list to restructuring status giving the Company time to source investors and reclassify its operations.”