The Nigerian Stock Exchange (NSE) has placed fines on six companies for not submitting their financial results as at when due.
The NSE rule requires quoted companies to submit their audited earnings reports, not later than three months or 90 calendar days after the expiration of the period which is December 31, every year.
According to rules, late submission attracts a fine of N100,000 per day for the first 90 calendar days of non-compliance, another N200,000 per day for the next 90 calendar days and a fine of N400,000 per day thereafter until the date of submission.
The affected banks are FBN Holdings, Sovereign Trust Insurance, Fidelity Bank, Sterling Bank, Meyer and Presco Plc, according to The Nation.
The amount of the fines are as follows:
1. FBN Holdings – N2.1 million.
2. Sovereign Trust Insurance – N2.1 million.
3. Fidelity Bank – N2.7 million.
4. Sterling Bank – N1.3 million.
5. Meyer – 2.1 million.
6. Presco Plc – N1.3 million.
The fine was, as a result, the delay of their 2017 audited financial statements and first quarter 2018 results for some of the companies.
Last week, the Central Bank of Nigeria, CBN, issued a directive that it will sack chief executive of any bank and its chairman who fails to publish its annual account 12 months after the financial year-end
The CBN also directed all banks, discount houses, and their subsidiaries to continue to adopt December 31 as their accounting year end.