We delist companies to protect investors – NSE

The Nigerian Stock Exchange (NSE) has said the delisting of companies from its trading floor is for the protection of investors.

NSE’s head of corporate communications, Olumide Orojimi, speaking with capital market correspondents at the weekend, stated that the bourse was only protecting investors in delisting companies in breach of its statutory listing requirements.

The NSE had delisted six companies last Thursday – namely Lennards (Nigeria), P.S Mandrides & Company, Premier Breweries, Costain (W.A), Navitus Energy, and Nigerian Ropes, effective December 1, 2016.

The delisting of these companies which was approved by the Quotations Committee of the National Council (QCN) of the NSE followed similar delisting of eight other companies earlier in the year.

These companies were IPWA, G. Cappa, West African Glass Industries, Investment & Allied Insurance, Aluminium Manufacturing Company, Jos International Breweries, Adswitch, and Rokanna., bringing to a total, fourteen companies delisted from the NSE, through regulatory action in 2016 alone, whereas the latest X-compliance report from the NSE shows that Deap Capital Management Plc, Evans Medical Plc, International Energy Insurance Plc, MTI Plc and MTECH Plc’s delisting process has been also approved by the NSE’s QCN.

While some of the companies are being delisted for failing to file their quarterly and annual financial reports and accounts with the NSE, some others will face the same fate for failing to regularize their listing status after being given time to do so. Recently, Chief Executive Officer, NSE, Mr. Oscar Onyema, stated “We do have continuing listing standard and we will continue to enforce it.