Three banks have been fined N13.5 billion by the Nigerian exchange limited (NGX) for failure to file their financial statements after the regulatory due date.
From investigations, it was seen that the companies were sanctioned during the current financial year 2022 for their inability to meet the regulatory requirements ranging between FY’2021 and the first quarter of 2022.
The companies include Unity Bank Plc, Union Bank Plc and First Bank holdings Plc.
First Bank holdings Plc was fined N8.1 million, Unity Bank Plc was fined N4.2 million and Union Bank Plc was fined N1.2 million.
The exchange in its X-compliance report explained that the initiative is directed to maintain market integrity and protect the investors by providing compliance related information on all listed companies.
The report thus stated that “companies that are listed on the Exchange are required to adhere to high disclosure standards which are prescribed in Appendix 111 of the Listing Rules. Financial information which is periodic disclosure and on-going material events disclosure should be released to the Exchange in a timely manner to enable it efficiently perform it’s function of maintaining an orderly market”.
The sanction was in accordance with the rules for filing of accounts and treatment of default filing, Rulebook of NGX (issuer’s rule)
Breakdown of the fines
*First Bank Plc was issued a fine of N5.5 million for 2021 audited financials and N2.6 million for Q1’2022 financials.
*Unity Bank Plc was charged N3.6 million for 2021 audited financials and N600000 for Q1’2022 financials
*Union Bank Plc was charged N1.2 million for 2021 audited accounts.