By Modupe Gbadeyanka
Six companies listed on the Nigerian Stock Exchange (NSE) have been placed on delisting watch-list by the industry regulator.
The affected firms have failed to comply with the corporate governance rules, according to an X-Compliance report released on Friday by the NSE.
The report said as a result, the Quotations Committee of the National Council of the Nigerian Stock Exchange (QCN) has approved that the affected companies to be placed on delisting watch-list subject to filing Quarterly Compliance Report.
The firms are African Paints (Nigeria) Plc, Afrik Pharmaceuticals Plc, Aso Savings & Loans Plc, Deap Capital Management Plc, Evans Medical Plc, and Union Homes Savings & Loans Plc.
According to the NSE, there are two delisting windows in place; the voluntary and compulsory delisting windows.
Under voluntary delisting, quoted companies can opt to delist their shares from the Exchange due to various reasons, including mergers and acquisitions, restructuring and private interests subject to fulfilment of the delisting rules and requirements.
Under the compulsory delisting window, the NSE may opt to delist companies that have failed repeatedly to meet extant rules and best practices in line with the Exchange’s commitment to protect investors and ensure that listed companies comply with global best practices.
Compulsory delisting is usually done pursuant to clause 15 of the General Undertaking, Appendix III of the Rule Book of The Exchange, which deals with the post-listing requirements and sanctions.
These affected firms, according to information gathered, were placed under regulatory watch-list after their directors sought for concessions to comply with listing rules.
Meanwhile, three companies were placed under the delinquent list and they are Multi-Trex Integrated Foods Plc, Omatek Ventures Plc, and DN Tyre & Rubber Plc.
The three firms were said to have failed to render their Audited Financial Statements for the year 2015.
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