Why NGX Suspended Mutual Benefits, Unity Bank, Lasaco From Trading In Shares

The Nigerian Exchange Limited (NGX) has revealed reason for suspending trading in shares of eight companies.

In a statement on Monday signed by Godstime Iwenekhai, NGX’s head of issuer regulation department, the bourse said the suspension took effect on July 8 over their failure to file their audited financial statements for 2023.

“Trading in the shares of the eight (8) companies below have been suspended from the facilities of Nigerian Exchange Limited (NGX or The Exchange) effective today, Monday, 8 July 2024 for not filing their Audited Financial Statements for the year ended 31 December 2023,” NGX said.

According to the stock market authority, the companies include C & I Leasing Plc, Guinea Insurance Plc, Lasaco Assurance Plc and Mutual Benefits Assurance Plc.

Others are NPF Microfinance Bank Plc, Regency Alliance Insurance Plc, Secure Electronic Technology Plc and Unity Bank Plc.

NGX said the suspension is in accordance with “Rule 3.1, Rules for Filing of Accounts and Treatment of Default Filing, (Default Filing Rules)”.

“If an Issuer fails to file the relevant accounts by the expiration of the Cure Period1, the Exchange will send to the Issuer a “Second Filing Deficiency Notification” within two (2) business days after the end of the Cure Period,” NGX said.

“Suspend trading in the Issuer’s securities; and notify the Securities and Exchange Commission (SEC) and the Market within twenty- four (24) hours of the suspension.”

NGX said the suspension of trading in the shares of the companies will be lifted upon the submission of the relevant accounts in accordance with the default filing rules.