The latest tracker report on corporate governance, regulation and compliance indicated that 49 companies have pending and unresolved compliance and governance issues that place them below the high standards required of quoted companies. The number of companies tagged with the red alert for various deficiencies represents about 28.5 per cent of the 172 total number of quoted companies at the Exchange.
The report was based on the Compliance Status Indicator (CSI) of the NSE, which uses three-letter codes to mark out companies that fall below the post-listing requirements at the Exchange. The tracker is updated regularly with addition of newly deficient companies and release of newly compliant companies.
Investors need to beware while seeking to buy or trade on shares of 49 quoted companies, a latest compliance assessment report by the Nigerian Stock Exchange (NSE) has shown.
The companies under the red-alert warning included:
Union Bank of Nigeria
Resort Savings and Loans
Averton Offsshore Support Group
A breakdown of the compliance report indicated that 22 companies were flagged for failure to submit their earnings reports within the scheduled timeline, nine companies were tagged for free float deficiencies, five companies were under delisting process, two companies were under restructuring while 10 other companies had compounded regulatory issues.
The flagged companies included:
Infinity Trust Mortgage
Multi-Trex Integrated Foods
Aso Savings & Loans
Union Homes and Savings
Deap Capital Management & Trust
International Energy Insurance
Thomas Wyatt Nigeria
Others included Golden Guinea Breweries, FTN Cocoa Processors, African Alliance Insurance Company, Austin Laz & Company, Daar Communications, Fortis Microfinance Bank, Juli, Great Nigerian Insurance, Capital Oil, Union Dicon, Union Diagnostics, Universal Insurance, Premier Paints, Avon Crowncaps & Containers and Afromedia.
The NSE uses 10 codes to tag companies with regulatory and compliance issues in order to draw attention to the unresolved deficiencies as part of efforts to enhance market integrity and ensure investors have full and transparent disclosures to make their decisions.