The Nigerian Stock Exchange (NSE) has warned listed companies against late filing of financial statements, while assuring stakeholders in the market that they will continue to monitor companies to make sure that they file their unaudited and audited financial statement as at when due.
According to the Head of Legal and Regulations Division of the NSE Tinuade Awe, late filing has the potential to adversely affect the market and their shareholders and create doubts regarding companies performances.
She noted that as at August 3, 2015, 89 percent of the active listed companies have filed their audited accounts for the year ended December 31, 2014. Adding that the exchange is monitoring the compliance status of companies very closely and is engaging companies that are falling short of their post listing requirements accordingly.
While she encourage investors to always check the X-Compliance Report and released financials on the NSE website for full details of the compliance status of listed companies before making investment decisions. However, for failure to file audited reports timely the NSE sanctions range from penalties to regulatory delisting of the securities from the Daily Official List of The Exchange.
These penalties accrue on a weekly basis and further depletes the bottom-line of the companies earnings. These penalties are also expected to be disclosed in the annual reports of the companies.
During the last two years, NSE has granted all listed companies a month grace after their respective regulatory filing dates noting the regulatory challenges of adopting the International Financial Reporting Standards by the listed companies and socio-political uncertainties that prevailed in the country in recent times.
The Exchange believes that the extended filing period was therefore adequate and Issuers should have no reason for failing to file their audited financials as at when due.