The Nigerian Stock Exchange (NSE) has announced that companies that delay their financial statements and accounts will face threats of suspension or delisting in addition to the monetary fines.
Under the NSE’s Rules for Filing of Accounts and Treatment of Default Filing, quoted companies are required to submit interim or quarterly report not later than 30 calendar days after the end of the relevant period. Quoted companies are also required to publish their earnings reports within 5 business days after the date of filing, in at least 2 national daily newspapers, and post their earnings report on the company’s website, with the web address disclosed in the newspaper publication. In addition, an electronic copy of the publication should be filed with the NSE on the same day as the newspaper publication. Where the company chooses to audit its quarterly accounts, it shall be required to file such accounts not later than 60 calendar days after the relevant quarter.
A general waiver is however usually given in the event of general disruption to industrial activities such as strike, national crises, public holidays and other circumstances that in the judgement of the NSE may significantly impact the 30-day timeline given to companies to prepare and submit the quarterly report.
If an issuer has a reasonable belief that it will not be able to file its accounts by the relevant due date, the issuer may before the due date submit an application for an extension of time, supported by compelling reasons and evidence in support of its inability to file its accounts by the due date. The issuer’s application should be received by the NSE not later than: (a) 30 calendar days before the filing due date for annual accounts; and (b) 14 calendar days before the filing due date for quarterly accounts. The NSE may in its sole discretion decide whether to grant such extension or not, provided that any extension granted shall not exceed 90 calendar days from the relevant due date.
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