By Nkiruka Nnorom

The Nigerian Stock Exchange (NSE) yesterday said that 89 per cent of quoted companies have so far complied with its post-listing rules requirement on financial statement rendition and have filed their respective 2014 audited financial report and account.

The exchange, therefore, warned defaulting companies to submit their results on time, adding that in the last two years, it had granted all listed companies a month’s grace after their respective regulatory filing dates to comply in view of the regulatory challenges of adopting the International Financial Reporting Standards by the listed companies and socio-political uncertainties that prevailed in the country in recent times. The exchange noted that the extended filing period is considered adequate, saying that issuers should have no reason for failing to file their audited financials as at when due.

Tinuade Awe, Head of Legal and Regulation Division, NSE, stated that “late filing has the potential to adversely affect the market and their shareholders. It creates grounds for avoidable doubts regarding companies’ performances.”

“The exchange is monitoring the compliance status of these companies very closely and is engaging the affected companies accordingly. We encourage investors to always check the X-Compliance Report and Released Financials on our website for full details of the compliance status of listed companies before making investment decisions,” Awe said.

For failure to file audited reports timely, the NSE sanctions range from penalties to regulatory delisting of the securities from the Daily Official List of the exchange.

These penalties accrue on a weekly basis and further deplete the bottom-line of the companies’ earnings. These penalties are also expected to be disclosed in the annual reports of the companies