NSE which was not specific on how long the extension would be, said in a statement that it was taking the decision 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.
“ The Nigerian Stock Exchange (NSE) has confirmed on Thursday March 28, 2013 that it will exercise discretion by granting all listed entities an extended filing date from the due date of the required financial periodic submissions,” the statement said.
“ This is coming as an intervention by The Exchange to ensure listed companies present this statutory requirement accurately. The new announcement offers a fresh assurance to businesses and advisors affected by the early adoption of International Financial Reporting Standards (IFRS) and levels of regulatory approvals which now includes Financial Reporting Council (FRC).”
The General Manager, Legal and Regulation Division of The NSE, Ms. Tinu Awe, stated that “The Exchange is in consultation with FRC and other Primary Regulators. 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.”
Awe 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 website. She mentioned that The Exchange will also forbear from imposing sanctions in terms of financial penalties.
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 the 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 in the Listing Rules of The NSE. Financial information, which is 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.