The Securities and Exchange Commission (SEC) has directed the Nigerian Stock Exchange (NSE) to fully suspend trading in the shares of Oando Plc over alleged irregularities in business activities.
According to SEC, the suspension would not commence until another 48 hours but before the hours stipulated by law ends, the company would be expected to undergo technical suspension.
A technical suspension is the interruption of price movement in a listed security for a period so that any dealings in the securities which occur during the period of the suspension will not result in any change in price, which change may have occurred had the suspension not been implemented.
The full suspension, which takes effect on Friday, was sequel to two petitions forwarded to SEC by Dahiru Barau Mangal and Ansbury Incorporated, alleging that the company had breached some agreements and the commission’s laws.
According to the statement made available to TheGuild on Wednesday, some of the allegations were: Breach of the provisions of the Investments & Securities Act 2007, Breach of the SEC Code of Corporate Governance for Public Companies, Suspected insider Dealing, Related party transactions not conducted at arm’s length, discrepancy in the shareholding structure of Oando Plc and others.
“The Commission notes that the above findings are weighty and therefore needs to be further investigated. After due consideration, the Commission believes that it is necessary to conduct a forensic audit into the affairs of Oando Plc. This is pursuant to the statutory duties of the Commission as provided in section 13(k), (n), (r) and (aa) of the ISA 2017.
“To ensure the independence and transparency of the exercise, the Forensic Audit shall be conducted by a consortium of experts made up of auditors, lawyers, stockbrokers and Registrars.
“To further ensure that the interest of all shareholders of Oando Plc are preserved during the course of the exercise, the Commission directed the Nigerian Stock Exchange to place the shares of Oando Plc on technical suspension.
“However in view of the fact that it is not technologically feasible for the Exchange to effect a technical suspension except after 48 hours, the Commission directed as follows;
“Effective for 48 hours from today, 18 October 2017 to 20 October 2017, The Nigerian Stock Exchange should implement a full suspension in the trading of the shares of Oando Plc,” it added.