The Nation Newspaper

Tag: NSE

  • Four insurance firms pay N24.9m fine

    Four insurance firms pay N24.9m fine

    African Alliance Insurance Plc, Cornerstone Insurance Plc, Equity Assurance Plc and Great Nigeria Insurance Plc have paid a total fine of N24.9 million fine to the Nigerian Stock Exchange (NSE) for filling their audited and interim financial statements after the expiration of the regulatory due date of March 31, NSE Compliance report as at February 17,  has shown.

    According to the NSE, the  sanctions were applied in accordance with the provisions of Section 14 of Appendix 111 of the listing rules.

    It stated that the fine came as a result of sanctions imposed  for default in submission of their financial statements for December 31, 2014 and first, second, and third quarter accounts as at due dates.

    Out of the fine, African Alliance got N4.2 million for failing to file its December 31, 2014, first quarter 2015 N3.3 million, second quarter N2.9 million and third quarter N1.6 million.

    Cornerstone Insurance Plc was fined N700,000 for failing to submit December 31, 2015 financial statement.Equity Assurance Plc was punished twice for failing to submit December 31, 2015 and first quarter 2016. The company was fined N600,000 and N500,000.

    Great Nigeria Insurance Plc was sanctioned four times. The periods of sanction are: December 31, 2014-N3.8 million, first quarter 2015-N3.8 million, second quarter 2015-N2.5 million and third quarter 2015-N1.2 million.

    Commissioner for Insurance Mohammed Kari said shareholders need to query insurers on why fines were imposed on them by regulatory agencies.

    He said the sanctions for any default or infraction by an operator are spelt out in the laws to the knowledge and understanding of the operators.

    This, he stressed, may not be perfect, but as long as it remains the law, its provisions must be complied with and it is the responsibility of NAICOM, as the statutory regulatory agency of the sector to ensure that every operator plays by the rule.

    He called on shareholders to demand explanations from their board of directors and management why such penalties are placed on them; incur high management expenses; fail to take advantage of the huge potentials in the market and the various market development initiatives introduced by NAICOM to expand their businesses, grow their revenue income and improve on their bottom-line to guarantee enhanced dividend payout to their shareholders.

    “We are looking at these details and may be making them public in due course,” he added.

  • NSE to release guidelines on sustainability disclosures

    NSE to release guidelines on sustainability disclosures

    The Nigerian Stock Exchange (NSE) will this year launch its guidelines on sustainability disclosures as part of efforts to ensure that quoted companies contribute to improving and sustaining standards of living by doing their businesses in a way that preserves the environment.
    Chief executive officer, Nigerian Stock Exchange (NSE) Mr. Oscar Onyema, said the Exchange has held itself accountable to the highest standards of sustainable development; it will later this year launch the Exchange’s Sustainability Disclosure Guidelines, which will provide quoted companies with the rules and framework for sustainability reporting.
    He said the NSE, as a sustainable Exchange, has continued to highlight the importance of sustainable business practices in delivering value and supporting economic growth, noting that the NSE is intensifying its advocacy efforts to support the integration of the Environmental, Social and Governance (ESG) imperatives in the Nigerian capital market.
    The World Federation of Exchanges had in November 2015 issued guidelines on ESG reporting. WFE had identified 33 ESG indicators that might be of concern to exchanges. While the guidelines are not compulsory, they however serve to provide framework and benchmarks on ESG for consideration by other Exchanges. NSE is a member of WFE.
    Deloitte, the global financial services group, noted that while sustainability reporting has traditionally been voluntary, heightened regulatory and legal scrutiny, along with other market developments, indicates that the transparency and accuracy of sustainability reporting is increasingly important.
    “For example, recent high-profile incidents involving automotive, big-box retail, and energy and resources companies highlight growing attention to public company nonfinancial disclosures-such as how environmental, social, and governance (ESG) or sustainability topics are disclosed to stakeholders, especially investors. In addition, the climate change agreement reached at the 2015 Conference of Parties (COP21) and several other important developments highlight the movement toward more standardised, transparent, and meaningful ESG disclosures that drive value for users of the reported information and for public companies themselves,” Deloitte stated in the report titled: sustainability reporting, getting ahead of the curve.
    Investors and capital markets institutions are increasingly factoring ESG performance into investment decisions. In a September 2015 ESG survey published by CFA Institute, 73 per cent of investors responding to the survey said they take ESG issues into account in their investment analysis and decisions. The top reason investors consider ESG-related information is not to derive reputational benefit but to determine whether a company is adequately managing risk.
    Meanwhile, Onyema has urged newly inducted stockbrokers to uphold the integrity of the stock market.
    According to him, the Exchange believes that people will always make the difference in any endeavour, especially the capital market, when every other supporting conditions are right. It is for this reason that it carefully puts prospective employees, dealing members, and other players through a stringent screening process that ensures only the cream of the crop make it through its doors.

  • NSE kicks against Abuja Airport closure

    Nigeria Society of Engineers (NSE) President Otis Anyaeji has said the six-week duration fixed for the repair of the Nnamdi Azikwe International Airport (NAIA) Abuja was unrealistic.

    The NSE president kicked against plans by the Federal Government to temporarily shut down the airport, saying such decision was “not an option”.

    Anyaeji, who spoke at a news briefing yesterday in Abuja, said considering the economic and social implications of the airport shut down, the Federal Government should embrace modern engineering model adopted during runway repair of the Frankfurt Airport, Germany.

    He said government could adopt other options, such as repairing the runway in batches or embark on the repair from 6pm to 6am, rather than total closure of the airport.

    According to him, total closure would create problems for passengers and cargo aircraft.

    The NSE chief ruled out the choice of Kaduna International Airport or Niger State Airport was out of place, stressing that repair of the second runway should also begin as soon as possible.

    Anyaeji said: “Six weeks for the airport runway repair is impossible. The NSE will send a petition to the President that the government should conduct itself in the right order and do things as being practised in developed societies.”

  • NSE to list Med-View Airline’s N14.63b shares

    NSE to list Med-View Airline’s N14.63b shares

    The Nigerian Stock Exchange (NSE) will on Jan. 31 list the shares of Med-View Airline Plc by way of introduction.

    A senior official of NSE, who pleaded anonymity, confirmed the listing of the airline’s shares yesterday in Lagos.

    The official said the airline would list 9.75 billion ordinary shares of 50k each at N1.50 per share by way of introduction, indicating a market capitalisation of N14.63 billion.

    According to the News Agency of Nigeria (NAN), the listing by way of introduction implies that Med-View Airline’s shares will be available initially at the secondary market window.

    The official said the carrier would float an Initial Public Offering (IPO) later in the year.

    The airline management said in 2014 that it had commenced discussions to be listed on the NSE.

    Also, the NSE official said Jaiz Bank would in the next couple of weeks join the league of quoted companies on the exchange.

    According to him, the listing of the bank’s 29.46 billion ordinary shares of 50k each at N1.25 per share will also be by way of introduction.

    Commenting on the development, Malam GarbaKurfi, the Managing Director, APT Securities and Funds Ltd., said most operators would be excited by the listings.

  • New rules: NSE in frenzy for January changeover

    New rules: NSE in frenzy for January changeover

    Capital market regulators, quoted companies and operators are making last-minute preparations for the January 1, 2017 changeover to new rules, regulations and compliance enforcement that seek to alter the operations of the capital market.

    Three significant capital market rules and enforcement are expected to take effect on January 1. These include the redefinition of the standards for declaration of interim and final dividends, stronger sanction regime for delay or default in submission of corporate earnings and deregistration of undercapitalised capital market operators.

    Regulatory sources said the schedules for the enforcement of the new rules remain unchanged, a direct reference to the January 1, 2017 take-off date. However, theie implementation is billed for  Tuesday, January 3, 2017.

    Capital market operators are said to be working round the clock to comply with the regulations.

    Expectedly, the the Nigerian Stock Exchange (NSE) will on January 1, 2017, start the  implementation of a sanction regime for any company that makes spurious interim dividend payment in contravention of the new rules.

    According to the rules, any company that declares interim dividend during any financial year, and thereafter records accumulated losses at the end of that financial year, if it is discovered that the declaration of dividends was not justified by the availability of profit for distribution, shall be liable to pay a fine.

    Also, no company shall declare final dividends without first preparing and filing audited accounts, which shall form the basis of such declaration or action. For any infraction under these rules, companies shall be liable to pay fines of up to 100 per cent of the nominal value of the dividends or bonuses declared.

    The new rules seek to protect investors and forestall market manipulation through spurious dividend recommendation and false sense of strong earnings.

    Bogus dividend declaration had been fingered as one of the reasons for the large unclaimed dividends in the Nigerian capital market as companies sought to manipulate dividend payment and distribution in the absence of the adequate earnings to meet the payment. Bogus dividend declaration also contributes to share price manipulation by giving investors wrong sense of strong earnings.

    Also, the NSE will on the same date launch its new sanction regime for delay in submission of companies’ results. Under the new sanction regime, companies may pay fines that range from N100, 000 to more than N100 million as penalties for delay in the submission of their corporate earnings reports.

    Companies that also delayed their financial statements and accounts face threats of suspension and delisting in addition to the monetary fines.

    Under the existing sanction regime, sanctions for delay in filing of corporate earnings report for certain inveterate companies are within N5 million. Many companies have been known to delay the submission of their corporate earnings reports for upwards of six to 12 months and beyond. The new rules seek to strengthen existing rules on timely corporate earnings disclosure and set out clear processes for proper disclosure as well as stronger deterrence to non-compliance.

    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.

    Under the new rules, 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.

    In a major weeding off of undercapitalised capital market operators, Securities and Exchange Commission (SEC) will on the first day of the New Year cancel the registration of undercapitalised capital market operators. The apex capital market regulator had given such period a deadline of December 31, 2016 to comply with requisite capital base for their operations.

    A management source at SEC confirmed that deregistration of the undercapitalised operators will go on as scheduled.

    SEC had in December 2013 announced major increases in minimum capital requirements for capital market functions under a new minimum capital structure that was initially scheduled to take off by January 1, 2015. It however extended the deadline to September 30, 2015.

     

  • NSE probes Uyo building collapse, visits site

    NSE probes Uyo building collapse, visits site

    A special committee set up by the Nigerian Society of Engineers (NSE) has visited the scene of Saturday’s collapsed building at Reigners Bible Church International in Uyo, Akwa Ibom State.

    The NSE on Monday began investigation into the cause of the collapsed building where scores of worshippers died during the bishopric ordination service of the founder of the church, Akan Weeks.

    The committee led by a Professor of Structural Engineering, Prof. Charles Uko, and has several other members.

    The members of the committee expressed displeasure at the poor construction work in the church and lack of professional supervision of the building.

    Details later…

     

  • NSE woos entertainers with long-term capital

    NSE woos entertainers with long-term capital

    Nigerian Stock Exchange (NSE) has expressed its readiness to provide a platform for artists and promoters in the Nigerian and African entertainment industry to raise long-term funds to boost the growth of the industry.

    Its Chief Executive Officer, Mr. Oscar Onyema, who spoke at a Music Week Africa event hosted by the Exchange in Lagos, said substantial capital is required for the music industry to achieve its potential in Africa.

    He said the NSE has positioned itself as the African Exchange of choice for African issuers and global investors looking to use capital markets to raise both equities and debt capital.

    “Globally, long term growth is often achieved through public quotation on an Exchange. We believe that this growth and more can only be achieved by having companies in the entertainment industry listed on the Nigerian Stock Exchange. As Nigeria’s foremost Exchange we are certain that we are well positioned to help your industry achieve its full potentials, as well as reduce the cost of raising capital and building infrastructure to be globally competitive,” Onyema said.

    He said the Exchange would continue to support the event that seeks to explore and develop the various aspects of the African and global music industry, with a view to creating jobs and wealth accumulation through the capital markets.

    According to him, with a total market capitalisation of N15.7 trillion across all of product categories, the NSE has implemented far-reaching transformational policies aimed at strengthening and providing products that are aligned to investors’ requirements, improve market access, while ensuring a fair and orderly market.

    He noted that these deliverables have improved investor confidence and repositioned firms listed on the Exchange as attractive investment opportunities, urging the entertainment industry to look seriously at leveraging the opportunities that abound in the  capital market.

    “We are, particularly, proud to partner with Music Week Africa to promote the business of music and accelerate the growth of this sector in Africa. The Music Week Africa platform provides opportunities for sector players, investors and collaborators to close deals, network, connect as well as increase their capacity to develop profitable and sustainable business models for the music and entertainment industry on the continent,” Onyema said.

  • NSE to delist more firms for poor corporate governance

    •Investors’ N6b stuck in six delisted firms

    THE  Nigerian Stock Exchange (NSE)  is to delist more quoted companies that failed to meet its corporate governance standards.

    Last Thursday, the NSE delisted six companies, including Lennards (Nigeria) PLC, P.S Mandrides & Company PLC, Premier Breweries Plc, Costain (W.A) PLC, Navitus Energy PLC and Nigerian Ropes PLC.

    The Nation’s investigation indicated that the six companies were valued at N5.89 billion at   delisting, closing the regular secondary market window for investors seeking to exit the shares. Costain, with 1.08 billion shares, was valued at N542.19 million. Premier Breweries’ 979.21 million shares were valued at N2.89 billion. PS Mandrides, with 40 million shares, was valued at N214 million. Nigerian Ropes’ 263.67 million shares were valued at N1.97 billion. Lennards had 70.16 million shares and was valued at N210.49 million while Navitus Energy’s 98.6 million shares were worth N62.12 million.

    A delisting schedule obtained at the weekend indicated that at least five more companies might be erased by the Exchange. The companies, which final delisting has been approved, included International Energy Insurance, Deap Capital Management & Trust Plc, Evans Medical PLC, Mass Telecommunication Innovation Nigeria (MTI) PLC and MTECH Communications PLC.

    The NSE last May delisted eight companies including IPWA Plc, G.  Cappa PLC, West African Glass Industries PLC (WAGI), Investment & Allied Insurance PLC, ALUMACO Plc, Jos International Breweries PLC, Adswitch Plc and Rokanna PLC. The companies were then valued at N17.8 billion.

    With the exception of Nigerian Ropes, the companies were delisted under the compulsory delisting mechanism of the Exchange after their failure to meet post-listing requirements on timely disclosures and corporate governance. While the delisted companies could seek direct and indirect trading of their shares on the over-the-counter (OTC) market, NASD, the nascent OTC market lacks the comparative liquidity and regularity of the NSE.

    A source told The Nation that the companies were being delisted for their inability to comply with the listing requirements of the Exchange, especially in timely and accurate rendition of operational and financial accounts.

    The source noted that the delisting started almost two years ago and the authorities at the Exchange had continuously engaged the companies with the hopes that they would regularise their operations but they had failed to make any convincing move to comply with listing requirements.

    The source pointed out that some companies that had been issued delisting notices but made significant efforts to comply have been rescheduled from delisting list to companies undergoing restructuring, noting that delisting is the final stage of efforts made by the Exchange to encourage and incentivise compliance.

  • NSE suspends Resort Savings as regulators probe insider dealings

    The Nigerian Stock Exchange (NSE) will today place full suspension on the shares of Resort Savings and Loans Plc as capital market regulators launched investigation into allegations of corporate governance abuses against the management and directors of the mortgage banker.

    A circular issued by the NSE and obtained by The Nation indicated that Securities and Exchange Commission (SEC) had directed that a full suspension be placed on Resort Savings, implying that there will be no trading on the shares of the company as from today.

    “In compliance with the provisions of Section 35 of the Investments and Securities Act, 2007 and in order to give effect to the above directive, the Exchange will suspend full trading in the securities with effect from Tuesday 06 December 2016. The suspension will remain in force until further directives from the SEC,” the circular indicated.

    A source in the know told The Nation that capital market regulators were investigating allegations of corporate governance abuses and insider dealings leveled against some directors and management staff of the company.

    At the centre of the investigation were allegations of impropriety against the managing director of the company, Mr Abimbola Olayinka, who was said to have been forced to go on terminal leave.

    Resort Savings has been enmeshed in boardroom crisis in recent period. A member of the board, Senator Sunday Fajinmi, laid claim to chairmanship of the board of director and appointed a new acting managing director. Chief Babatunde Adefarati had been the chairman of the company.

    Resort Savings has wriggled under losses over the years. Loss after tax rose from N1.57 billion in 2013 to N2.99 billion in 2014.

    Also, the Consumer Protection Council (CPC) recently stated that it has started investigations into alleged diversion of mortgage funds and other sundry fraud allegations against Resort Savings.

    CPC said it was starting formal investigation of RSL because of the failure of the company to respond to earlier complaints against it, vowing that the consumer rights agency would prosecute any erring official of the company.

    Director General, Consumer Protection Council (CPC), Mrs. Dupe Atoki, said the Council was determined to investigate the operations of the company as well as engage in other legal steps in line with its enabling law with a view to protecting the consumers of the services of the primary mortgage company.

    According to CPC, consumer complaints bordering on alleged diversion of mortgage loans and consumers’ deposits had been lodged against RSL, prompting the Council to beam its searchlight on the primary mortgage bank’s operations.

    CPC indicated that it has already notified the Central Bank of Nigeria (CBN) and the Federal Mortgage Bank of Nigeria (FMBN) of the complaints against RSL. RSL is a primary mortgage institution licensed by the CBN to undertake mortgage business in Nigeria and also registered with the FMBN.

  • NSE expels stockbrokers, accountant over ‘fraud’

    NSE expels stockbrokers, accountant over ‘fraud’

    The Council of the Nigerian Stock Exchange (NSE) has kicked out three stockbrokers and an accountant for fraudulent sale of client’s shares.
    They are Mr. Taju Folaji, Mr. Ichie Mike Ejezie and Mr. Segun Adebayo Adams. The accountant is Mr. Olorunfemi Ayorinde. He could be reported to the Institute of Chartered Accountants of Nigeria (ICAN) for further disciplinary action, according to a source.
    This brings the number of stockbrokers expelled so far this year to seven.
    A document obtained by The Nation at the weekend indicated that the Disciplinary Committee of the NSE, indicted the affected for shares fraud.
    The stockbrokers, who were members and authorised dealers on the Exchange, were stripped of their registration and authority to trade on the NSE for selling shares belonging to their clients without the mandate and consent of the clients.
    Also, the accountant, who was in a stockbroking firm, was blacklisted from carrying out capital market activities with dealing member firms of the Exchange for engaging in “unauthorised transfer and sales of clients’ shares”.
    The stockbrokers would also be subjected to further disciplinary procedures by the Chartered Institute of Stockbrokers (CIS) and the Securities and Exchange Commission (SEC), two institutions that also share jurisdictions on ethics, discipline and compliance at the capital market.
    The NSE had earlier this year expelled three stockbrokers – Mr Ayokunle Oyedeji, Mr Abioye Eluwole and Mr Gregory Otsu for a similar offence.
    “Dealing members are strongly advised not to engage in any activity with the above listed individuals,” the NSE stated in a circular on the expulsion.
    With the expulsion, the indicted stockbrokers and accountant will also not be able to work in any stockbroking and investment firms in Nigeria, according to Rule Six, subsection 12 of the NSE Rules.
    Under the rule known as “Specific Actions Requiring Prior Consent of The Exchange”, a dealing member shall not be allowed to employ some categories of persons without the prior written consent of the NSE.
    These include directors, authorised clerks or other persons including principal officers, such as the chief executive officer, chief finance officer, chief compliance officer and chief risk officer, who have been indicted by the NSE or Securities and Exchange Commission (SEC).
    Others include any person who was an officer or employee of a dealing member expelled from the Exchange, any person expelled, as an authorised clerk or its equivalent, from any other Exchange, any person refused admission as a member of the Chartered Institute of Stockbrokers (CIS), or any person expelled from its membership, any person expelled as a member of any professional association or institute and any person who is insolvent or has been convicted of theft, fraud, forgery, or any other crime involving dishonesty.
    The Exchange had recently started the implementation of newly amended rules aimed at tightening the noose on unauthorised sale and transfer of shares by unscrupulous stockbroking firms and traders.
    Under the amended rules, it could withdraw the dealing licence of any erring stockbroking firm and trader as well as impose fines not less than N1 million on any offender.
    According to the rule, no dealing member shall sell or transfer any securities without the authorisation of the owner.
    “A dealing member that has sold or transferred any securities without the authorisation of the owner shall not be permitted to keep any benefits accruing from such transaction, including but not limited to bonuses, rights, commissions, cash dividends, capital appreciation, and any profit accruing therefrom whatsoever,” the rule stated.
    Any dealing member that sells or transfers securities without the authorisation of the owner shall be required to buy back the securities along with any accrued benefits within a period of 14 business days.
    Besides, where the unauthorised sale transaction is worth N5 million and below in value, the erring stockbroking firm will be liable to pay a fine of N1 million or three times the value of the sale or transfer, whichever is higher, and N5,000 for every day from the day on which the dealing member is required to buy back the securities by the Exchange until the day the dealing member completes buying back the shares for the owner.
    Also, NSE has also started implementing its “naming and shaming” rule, which empowers the Exchange to notify the public of suspensions and expulsions of any stockbroking firm.
    According to the rule, it shall have power to publish in the local newspapers or circulars to dealing members and other members of the Exchange, the name of any member expelled or suspended by the Exchange, or any authorized clerk whose registration has been revoked by the Exchange, and also to publish such expulsion, suspension or revocation in any other way it may deem fit.