Findings by Leadership revealed that most of the firms delisted voluntarily from the bourse had cited harsh economic climate and parent company buy-out as reasons.
While stockbrokers said the companies were being delisting for recurring and possibly irredeemable inability to comply with the listing requirements of the Exchange, especially in the areas of timely and accurate rendition of operational and financial accounts and other corporate governance issues.
Shareholders have bemoaned the delisting of listed companies by the regulatory authorities, saying it does not augur well for average investors and the nation’s capital market.
The general secretary of the Independent Shareholders Association of Nigeria (ISAN), Mr. 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 losing a lot of money in the market. Nobody is thinking of giving forbearance 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,” he said.
Meanwhile, the CEO of NSE, Oscar Onyema noted that good corporate governance will ensure the existence of solid companies in Nigeria.
He said the idea of forcing companies to list on the nation’s bourse may lead to infractions in the market, adding that a lot of energy has been committed in building the foundational aspect of the market in terms of transparency, orderliness, fairness, disclosure, and enforcement of rules and regulations.