The Nigerian Stock Exchange, NSE, has delisted nine companies from its operations between January and October for mostly failure to comply with regulations.
Delisting involves removal of listed securities of a company from a stock exchange where it is traded on a permanent basis.
Data obtained from the exchange in Lagos indicates that the companies include IPWA Plc, G. Cappa, West African Glass Industries, Investment & Allied Insurance and Alumaco.
Others are Jos International Breweries, Adswitch, Rokanna and Vono Products Nigeria Plc.
Eight of the companies were delisted for regulatory issues while Vono Products was delisted because of its merger with Vitafoam.
Some of the conditions that necessitate delisting from the Exchange include breach of post listing requirements, failure to pay the annual listing fee or a company in liquidation. In addition, non-submission of audited and unaudited reports as required by the exchange increases the chances of delisting.
Other issues bordering on corporate governance may attract sanctions such as trading suspension which is lifted as soon as the matter is resolved.
To avoid being delisted, the management of a quoted company should endeavour to comply with NSE post listing requirements.