Nigeria’s SEC to penalize quoted firms that fail to publish monetary outcomes on web sites   

The Securities and Trade Fee (SEC) has issued a stern warning to all quoted firms in Nigeria concerning the simultaneous publication of periodic monetary returns on their web sites.

The Fee handed out the warning in a round issued on Tuesday to all the businesses, noting that sanctions would begin from January 2025.

The SEC expressed concern over the follow of firms submitting these returns with the SEC and related exchanges with out concurrently publishing them on their company web sites.

Contravening guidelines 

This omission, in response to the SEC, contravenes Guidelines 39 and 41 of its Guidelines and Laws.

These guidelines mandate the general public availability of such info to make sure transparency and facilitate knowledgeable funding selections.

• The SEC emphasised that the first purpose for requiring web site publication is to offer simple and instant entry to essential monetary information for the investing public.
• This entry empowers buyers to make sound judgments based mostly on up-to-date info. Moreover, the Fee reiterated the significance of well timed disclosures as a cornerstone of efficient shareholder engagement.

“Consistent with the foregoing, efficient from January 2025, any public firm that fails to adjust to the requirement of the referenced Guidelines in respect of the submitting of its periodic returns with the Fee, related securities exchanges and the simultaneous placement of similar on its web site could be penalised as acceptable,” the Fee warned within the round.

Extra insights 

This directive bolstered the SEC’s dedication to enhancing transparency and selling investor confidence within the Nigerian capital market.

• By guaranteeing the immediate and public availability of monetary info, the Fee goals to create a extra degree taking part in subject for all market members.
• This growth is anticipated to immediate quoted firms to evaluation their disclosure practices and guarantee they’re aligned with the SEC’s rules.
• Traders are additionally suggested to leverage these available sources on firm web sites to conduct thorough due diligence earlier than making funding selections.

What it is best to know 

• In Nigeria, quoted firms are required to file their annual monetary outcomes with the Securities and Trade Fee (SEC) and the Nigerian Trade Restricted (NGX) inside 90 days of the tip of the accounting 12 months.
• For instance, the due date for submitting the 2022 audited monetary statements was March 31, 2023.
• Along with submitting monetary outcomes, firms are additionally required to publish the monetary ends in not less than two nationwide newspapers inside 21 days earlier than the Annual Basic Assembly
• They’re additionally mandated to put up the monetary outcomes on the corporate’s web site, with the net tackle disclosed within the newspaper publications.