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NSE slams N49million fine on First Bank, Wema Bank, Academy Press, others

The Nigerian Stock Exchange has fined 12 companies listed on the exchange for failing to file their financial results before the regulatory due date.

Seven of the affected firms are financial institutions. The are: First Bank,  Wema Bank, First City Monument Bank (FCMB) Sterling Bank, Sovereign Trust Insurance, Fidelity Bank and Abbey Mortgage Bank.

The other companies are Academy Press, Meyer Plc, Presco, Vitafoam, International Breweries.

According to the NSE listing rules, companies are expected to submit their financial year-end result latest by 90 days after the end of each year.

Quarterly results are also expected to be submitted at most 60 days after the end of each quarter.

The companies are expected to pay up to N49.1 million in total. Below is a breakdown of the fines:

  1. First Bank – N2.1 million.
  2. Abbey Mortgage Bank – N700,000
  3. First City Monument Bank – N100,000
  4. Fidelity Bank – N2.7 million
  5. Sovereign Trust Insurance – N2.1 million
  6. Sterling Bank – N1.3 million
  7. Wema Bank – N800,000
  8. Academy Press – N35 million
  9. International Breweries – N100,000
  10. Meyer Plc – N2.1 million
  11. Presco – N1.3 million
  12. Vitafoam -N800,000.

Post-listing rules at the NSE require quoted companies to submit their audited earnings reports, not later than three months or 90 calendar days after the expiration of the period. The deadline for submission of annual report for companies with Gregorian calendar business year ended December 31, 2017 was March 31.

Under the rules at the Exchange, late submission under the first instance of 90 days could attract N9 million, the additional period of 90 days will attract N18 million while such delay beyond the first 180 days to the next 180 days could attract as much as N72 million, bringing fines payable by a defaulting company within a year to N99 million.

A late submission attracts a fine of N100,000 per day for the first 90 calendar days of non-compliance, another N200,000 per day for the next 90 calendar days and a fine of N400,000 per day thereafter until the date of submission.

 

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