Investors need to beware while seeking to buy or trade on shares of 49 quoted companies, a latest compliance assessment report by the Nigerian Stock Exchange (NSE) has shown.
The latest tracker report on corporate governance, regulation and compliance obtained by The Nation indicated that 49 companies have pending and unresolved compliance and governance issues that place them below the high standards required of quoted companies. The number of companies tagged with the red alert for various deficiencies represents about 28.5 per cent of the 172 total number of quoted companies at the Exchange.
The report was based on the Compliance Status Indicator (CSI) of the NSE, which uses three-letter codes to mark out companies that fall below the post-listing requirements at the Exchange. The tracker is updated regularly with addition of newly deficient companies and release of newly compliant companies.
The companies under the red-alert warning included Union Bank of Nigeria, Presco, Skye Bank, Transcorp Hotel, Resort Savings and Loans, Evans Medical, Academy Press, Nigerian-German Chemicals and Caverton Offsshore Support Group.
A breakdown of the compliance report indicated that 22 companies were flagged for failure to submit their earnings reports within the scheduled timeline, nine companies were tagged for free float deficiencies, five companies were under delisting process, two companies were under restructuring while 10 other companies had compounded regulatory issues.
The flagged companies included Capital Hotel, Chellarams, Interlinked Technology, Infinity Trust Mortgage, E-Tranzact, Omatek Ventures, Roads Nigeria, Multi-Trex Integrated Foods, Aso Savings & Loans, Ekocorp, Ikeja Hotel, Union Homes and Savings, Deap Capital Management & Trust, International Energy Insurance, Afrik Pharmaceuticals, Anino International, African Paints, Goldlink Insurance and Thomas Wyatt Nigeria.
Others included Golden Guinea Breweries, FTN Cocoa Processors, African Alliance Insurance Company, Austin Laz & Company, Daar Communications, Fortis Microfinance Bank, Juli, Great Nigerian Insurance, Capital Oil, Union Dicon, Union Diagnostics, Universal Insurance, Premier Paints, Avon Crowncaps & Containers and Afromedia.