The Nigerian Stock Exchange (NSE) has been commended for its sustenance of strict corporate governance and ensuring strict compliance to market rules.
Vice President, Strategy & Corporate Services, FMDQ, Ms. Kaodi Ugorji gave the kudos recently in Badagry Lagos during an event with focus on boosting indigenous participation in the Nigerian capital market.
She said that Nigeria with over 180 million population, Nigeria still cannot pride of 5 per cent of the population saving in the capital market, adding that the investing population of below 2 per cent, showed that there is immense opportunity for growth of the Nigerian market.
The FMDQ Vice President said that investor confidence which would propel more local participation in the market should be driven by transparency and strict compliance to market rules, which the NSE is committed to delivering on.
she emphasised that de-listing companies from the capital market , a practice which the NSE has sustained to demonstrate that the market is transparent and committed to ethical practices, would serve as warning to other companies as it helps to protect the investing public.
“It is important that Exchanges protect prospective investors that wanted to invest in troubled companies. Delisting is something Exchanges must do to protect investors, she explained.
Head Corporate Communications, NSE, Mr. Olumide Orojimi giving reasons for flushing out delinquent companies from the NSE official list, said that listed companies signed to comply with post listing rules of the Exchange , which specified that any breach attracts sanction.
He revealed that the NSE had several engagements with companies before considering delisting them.
“Listed companies have post listing requirement they need to comply with. The Exchange took a step on how to assist some of these companies’
Some of the steps towards reviving the companies, he revealed include “Facts behind restructuring” which gives companies opportunity to explain their situation to market operators and investors.
“We have done facts behind restricting for Goldlink Insurance Plc and FTN Cocoa- we are engraining with some of these companies to resolve their post listing requirement.
“What can you say of a company that has not submitted its accounts for years irrespective of NSE engagement? The delisting is for investors’ protection and to show how the management of NSE is taking transparency serious,” he added.