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Regular Imposition Of Fines Scaring Investors From Capital Market -Shareholders

Regular Imposition Of Fines Scaring Investors From Capital Market -Shareholders

Regular Imposition Of Fines Scaring Investors From Capital Market -Shareholders

Regular Imposition Of Fines Scaring Investors From Capital Market -Shareholders

The frequent imposition of fines on companies failing to comply with post-listing regulations has alarmed some shareholders of companies listed on the Nigerian Exchange, who fear that it may deter investors and prospective companies from listing on the country’s capital market.

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The shareholders who made this claim in a conversation with Nairametrics highlighted that in order to advance the market, market regulators must adopt cooperative policies and strategies through consultation with market operators.

They agreed that the regulators should not condone a breach of listing rules of the Exchange which must often lead to fines/penalties. However, they recommended alternative sanctions because the imposition of monetary fines is crippling some of these companies financially. 

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Regular Imposition Of Fines Scaring Investors From Capital Market -Shareholders

The fine: This year alone, some 17 NGX-listed firms were fined a total of N93.920 million for failure to file their financial statements after the regulatory due date. 

Checks by Nairametrics showed that the companies were sanctioned for their inability to meet the regulatory requirements of filing ranging between the third quarter of 2021 and the third quarter of 2022. 

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Among the companies that were fined is Coronation Insurance Plc led with N14.9 million of the fines which represents 36.34% of the total fines while Royal Exchange Plc followed with a fine of N9.8 million, Mutual Benefits Assurance Plc was fined N6.2 million, LASACO Plc got a fine of N5.3 million while Veritas Kapital Assurance trailed with N4.8 million fine.

Others include First Bank Holding Plc led with N8.1 million of the fines while Unity Bank Plc followed with a fine of N4.2 million and Union Bank Plc trailed with N1.2 million, among others. 

The shareholders advised the Exchange and other regulators that if such fines continue, potential investors and even existing ones will be discouraged. 


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