Companies that flout the new rules could be fined as much as N100 million while average fines could increase to as much as N20 million.
According to various media reports, quoted companies on the Nigerian Stock Exchange who delay in the submission of their periodic interim and annual audited reports and accounts would pay heavy fines and may be delisted from the Nigerian Stock Exchange (NSE) hence forth as the Exchange revises its rules on filing of accounts and default filings.
The Nation newspaper reports that companies that flout the new rules could be fined as much as N100 million while average fines could increase to as much as N20 million.
Under the existing rules, the fines for delays of this nature ranged from N100, 000 to N7.1 million with Daar Communciations Plc receiving the latter in recent times.
Recently, the NSE had come under serious criticism over its complicity and negligence which enabled companies to hide poor performance results as well as material information.
According to Nigeria CommunicationsWeek, a certain oil and gas company reported a cumulative net los after tax of N240 billion after it delayed its annual report and interim report for the first and second quarter until the 11 month of the new financial year.
The company only received a N6.2 million fine for delaying to produce three results, according to the report.
However, under the new rules – which are currently under review – late submission of accounts wil attract a fine of N100, 000 per day for the first 90 days of non-compliance; N200, 000 per day for the next 90 days and N400, 000 per day thereafter until the day of submission.
The new rules shall also be applicable to all companies and securities listed on the main and premium boards of the NSE.