Improved regulatory oversight at the Nigerian Stock Exchange (NSE) is now paying-off as many companies in various segments of the market paid over N34.1 million as penalty, particularly for breaking post-listing rules.

Companies that are listed on the Exchange are required to adhere to high disclosure standards which are prescribed in Appendix III of the Listing Rules to enable the NSE efficiently perform its function of maintaining an orderly market. Particularly, financial information which is periodic disclosure and on-going material events disclosure are expected to be released to the Exchange timely.

Detailed check showed that the segment of the market that hosted these defaulters were majorly financial services sector, healthcare, oil and gas, consumer goods, and industrial goods.

Breakdown of this amount paid as penalty shows that the Exchange raked in N4.33 million from companies for publications in the media without NSE written approval in 2011; while N4.14 million was paid by three companies for publication without NSE written approval in 2012. Also, bulk of this money (about N25.63 million) was collected as penalty from companies that were sanctioned for late filings of financial statements.

BusinessDay further checks in the ‘X-Compliance Report’ currently at the NSE revealed that this amounts paid as penalty resulted from unauthorised publication of information in the media, and late filing of financial statements of 2010 and 2011 financial years.

In accordance with the provisions of Appendix III of the Listing Rules, quoted companies at the Exchange are required to obtain prior written approval before publications are made in the media particularly with regard to interim results, audited accounts, changes in the board, appointment of directors, appointment of acting CEOs, notice of divestment of holdings from non-banking subsidiaries, and notice of extra-ordinary general meeting.

X-Compliance Report is a transparency initiative of the Exchange which is designed to maintain market integrity and protect the investors by providing compliance related information on all listed companies.

This report provides information on released financials, early filers of audited accounts, delinquent filers of audited accounts, delinquent filers of quarterly reports, companies that are operating below listing standards, companies with free-float deficiency, companies that breached listing rules, enforcement actions against companies, companies slated for delisting, application for new listings, and applications approved by the quotations committee.