The Nigerian Stock Exchange (NSE) has confirmed that it will grant all listed entities an extension of 30 days from the due date of the required periodic financial submissions.
The extension offers fresh assurance to businesses and advisors challenged with the adoption of International Financial Reporting Standards (IFRS) as well as increased levels of regulatory approvals, including from the Financial Reporting Council of Nigeria (FRC).
The NSE said this decision is in response to the challenges being experienced by listed entities in meeting their regulatory periodic filing obligations with the Exchange for fiscal 2012 audited accounts and 2013 interim accounts.
Tinu Awe, general manager, legal and regulation division, NSE stated that “while we believe that the timely disclosure of financial information is critical to stakeholders in the capital market as well as investors, the challenges which the entities are facing are germane. It is in view of the extenuating circumstances that the Exchange is granting all listed companies an extended filing date of 30 days from the due date of the required periodic financial submissions”.
Awe further explained that during this period, the NSE will not apply the tag Below Listings Standard (BLS) beside the names of entities on the X-Compliance Report which is published on the Exchange’s website, adding that the NSE will also forbear from imposing any financial or disclosure penalties during the extension period.
It can be recalled that the Nigerian bourse introduced the X-Compliance Report in mid-2011 as a transparency initiative of the Exchange designed to maintain market integrity and protect investors by providing compliance related information on all listed companies.
Companies listed on the Exchange are required to adhere to high disclosure standards which are prescribed by the listing rules of the NSE. Financial information, which is structured, periodic disclosure and on-going material events disclosure are also to be released to the Exchange in a timely manner to enable it efficiently perform its function of maintaining an orderly market.