THE Independent Shareholders Association of Nigeria (ISAN) has bemoaned the delisting of listed companies by the regulatory authorities, saying it does not urgur well for average investors and the nation’s capital market.
The General Secretary of the association, Adeleke Adebayo urged capital market regulators to allow those listed companies that are not meeting the post listing requirements to remain a ‘public focus’.
He argued that institutional investors may develop interest in such companies and decide to invest in them.
“We are loosing a lot of money in the market. Nobody is thinking of giving forebearance to investors. We need to make some price adjustments not to continue to delist companies because it is not good for average investors. Let it remain a public focus. Some investors can develop interest and invest in these companies.”
The Nigerian Stock Exchange (NSE) had at the end of the second quarter announced plans to delist about 24 quoted companies from its daily official list for breaching post listing requirements.
According to the Exchange, some of the companies were being delisted for failing to file their quarterly and annual financial reports and account with the NSE, while some other ones failed to regularise their listing status after being given time to do so.
The companies being delisted for non-rendition of their financial accounts include UTC Plc, FNT Cocoa Processing Plc, G. Cappa Plc, Big Treat Plc, Mtech Plc, Daar Communications Plc, Starcomms Plc, Nigeria Wire and Cable Plc and West Africa Glas Industry Plc.
Others are IPWA Plc, Rokana Industry Plc, Afroil Plc, Adswitch Plc, Pinnacle Point Group Plc, Goldlink Insurance Plc and Investment and Allied Insurance Plc.
Those being delisted for not regularising their listing status include Jos International Breweries Plc, Golden Guinea Plc, Capital Oil Plc, Nigeria Sewing Machine Plc and Stockvis Plc.
In a statement announcing the delisting, the Exchange said that the decision was taken on June 2, 2014 by the Quotation Committee of the National Council, pursuant to the provision of the Greenbook, (Listing Rules), specifically Clause 15 of the general undertaking.
It further stated that the action became necessary in order to protect the investing public from trading in securities of entities with no current information on their financial status, adding that it would take effect three months from the date of the notice.
However, while others struggled to comply with the requirements, four companies were unable to make it prompting the Exchange to get them finally delisted from its daily official list.
The affected companies are Pinnacle Point Group Plc, Afroil Plc, Starcomms and Big Treat.
The stock exchange said the affected companies failed to take any appropriate step to regularise their listing status.
It said the notice provided a three-month window for each of the affected listed companies to regularise its listing status with the exchange.
According to the statement, one of the affected companies has fully regularised its listing status, while 19 companies have taken some steps to regularise their listing status.
The statement added that the exchange would continue to engage these 19 companies to ensure compliance with their post listing obligations
The General Secretary of the association, Adeleke Adebayo urged capital market regulators to allow those listed companies that are not meeting the post listing requirements to remain a ‘public focus’.
He argued that institutional investors may develop interest in such companies and decide to invest in them.
“We are loosing a lot of money in the market. Nobody is thinking of giving forebearance to investors. We need to make some price adjustments not to continue to delist companies because it is not good for average investors. Let it remain a public focus. Some investors can develop interest and invest in these companies.”
The Nigerian Stock Exchange (NSE) had at the end of the second quarter announced plans to delist about 24 quoted companies from its daily official list for breaching post listing requirements.
According to the Exchange, some of the companies were being delisted for failing to file their quarterly and annual financial reports and account with the NSE, while some other ones failed to regularise their listing status after being given time to do so.
The companies being delisted for non-rendition of their financial accounts include UTC Plc, FNT Cocoa Processing Plc, G. Cappa Plc, Big Treat Plc, Mtech Plc, Daar Communications Plc, Starcomms Plc, Nigeria Wire and Cable Plc and West Africa Glas Industry Plc.
Others are IPWA Plc, Rokana Industry Plc, Afroil Plc, Adswitch Plc, Pinnacle Point Group Plc, Goldlink Insurance Plc and Investment and Allied Insurance Plc.
Those being delisted for not regularising their listing status include Jos International Breweries Plc, Golden Guinea Plc, Capital Oil Plc, Nigeria Sewing Machine Plc and Stockvis Plc.
In a statement announcing the delisting, the Exchange said that the decision was taken on June 2, 2014 by the Quotation Committee of the National Council, pursuant to the provision of the Greenbook, (Listing Rules), specifically Clause 15 of the general undertaking.
It further stated that the action became necessary in order to protect the investing public from trading in securities of entities with no current information on their financial status, adding that it would take effect three months from the date of the notice.
However, while others struggled to comply with the requirements, four companies were unable to make it prompting the Exchange to get them finally delisted from its daily official list.
The affected companies are Pinnacle Point Group Plc, Afroil Plc, Starcomms and Big Treat.
The stock exchange said the affected companies failed to take any appropriate step to regularise their listing status.
It said the notice provided a three-month window for each of the affected listed companies to regularise its listing status with the exchange.
According to the statement, one of the affected companies has fully regularised its listing status, while 19 companies have taken some steps to regularise their listing status.
The statement added that the exchange would continue to engage these 19 companies to ensure compliance with their post listing obligations
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