Indications have emerged that quoted firms on the Nigerian Stock Exchange, NSE, may pay fines ranging from N100,000 over N100 million for delay in the submission of their corporate earnings reports.
This sanction is embedded in a a set of new rules which will take effect at the stock market on January 1, 2017. Firms that delayed their financial statements and accounts face threats of suspension and delisting, in addition to the monetary fines.
Going by the new set of regulations, sanctions for delay in filing of corporate earnings report for serial violators are within N5 million.
The new rules seek to support existing rules on timely corporate earnings disclosure and set out processes for proper disclosure, as well as stronger deterrence to non-compliance.
The new rules apply to all companies on the main and premium boards of the Exchange. Companies on the less-stringent Alternative Securities Market (ASeM) are exempted.
The rules also apply to all securities, including all types of shares and other issuances. The new rules on filing of accounts and treatment of default filing have already been approved by the Council of the NSE and the Securities and Exchange Commission (SEC), after initial review by capital market stakeholders.
Under the new rules, quoted companies will be required to file their unaudited quarterly accounts with the NSE not later than 30 calendar days after the relevant quarter, and publish it within five business days after the date of filing, in at least two national daily newspapers, and post it on the company’s website, with the web address disclosed in the newspaper publication. Also, an electronic copy of the publication shall be filed with the Exchange on the same day as the newspaper publication.
Where the company chooses to audit its quarterly accounts, it shall be required to file such accounts not later than 60 calendar days after the relevant quarter, and publish it within five business days after the date of filing, in at least two national daily newspapers and post it on the company’s website, with the web address disclosed in the newspaper publications.
Such a company will also be required to file electronic copy of the publication with the Exchange on the same day as the newspaper publication,the Nation reports.
