The Nigerian Stock Exchange (NSE) has delisted a total of 112 quoted companies from its official list between 2002 and January 9, this year.
Available data from NSE showed that 68 companies delisted based on NSE regulatory rule, 18 removed voluntarilly , 9 entered into merger with another company, three companies nationalized by Central Bank of Nigeria while five companies delisted as result of NAICOM regulatory rule.
The Chief executive officer of NSE, Oscar Onyema said that listing or delisting of company shares from NSE official list was a matter of choice making, adding that the management of the Exchange would not force anybody to continue listing or to get listed.
He said that the duty of the NSE was to ensure that it provides a good playing environment for them to remain in the system.
He explained that the Exchange operates open door policy, adding that as one company get delisted today another one would be listed tomorrow. He said that in the last one year major companies were delisted while other strong companies also get listed on the Exchange.
Commenting on the delisting of companies from NSE official list, the managing director APT Securities and Fund Limited, Malam Garba Kurfi said delisting of a company without relisting reduces market capitalisation by total market capitalisation of the company.
He explain that exit of the company bring lost of the Capital because some of the Investors will assume that as long as the stocks have stopped appearing on the official list of the Exchange they have lost their Investment.
He said in the last 9 years many Investors have not received their payment from some delisted companies including 7up Bottling Company and other companies delisted recently.
He explained that Most company delisted do not complies with Corporate Governance policy, stressing that those companies in question hardly publish their annual financial statement, thereby making it difficult for investors to see their financial results.