By Dipo Olowookere
The Nigerian Exchange (NGX) Regulation Limited has sanctioned a leading lender for the real estate sector, Infinity Trust Mortgage Bank Plc, for violating one of its listing rules.
In a regulatory document obtained by Business Post over the weekend, the mortgage bank was accused of failing to “disclose the confirmation of the appointment of the new Managing Director of the bank,” which the regulator could have an impact on the share price of the organisation on the stock exchange.
Last month, Infinity Trust Mortgage Bank, in a statement, announced the appointment of Mr Sunday Olumorin as its Managing Director, succeeding Mr Olabanjo Obaleye, who completed his tenure as the head of the company.
In the notice, the financial institution said the appointment, which was in line with its succession plan, was confirmed by the Central Bank of Nigeria (CBN) on June 15, 2022.
“Having held various senior executive roles with the bank, Olumorin (an executive director in the bank) brings over 20 years’ experience of working across all areas of mortgage, finance, investments, consulting and real estate in Nigeria,” the statement said in part.
This development did not go down well with NGX Regco, which stated that the announcement went against “Rule 17.5: Price Sensitive Information, Rulebook of the Exchange 2015 Issuers’ Rules.”
In view of this, the regulator has forced the company to undergo mandatory compliance training (MCT)
According to the NGX, every listed company is required to provide timely information to enable it efficiently perform its function of maintaining an orderly market.
In accordance with the provisions of Appendix III: General Undertaking (Equities), Rulebook of NGX, 2015 (Issuers’ Rules) and NGX’s Circular No. NSE/LARD/LRD/CIR3/17/05/12 on publication of announcements or press releases via the issuers’ portal, listed companies are required to obtain prior written approval from NGX RegCo before publications that affect shareholders’ interests are made in the media or via the issuers’ portal.
Also, NGX RegCo sanctioned Multi-Trex Integrated Foods Plc with an MCT for violating Rule 19.6: Submission of Notice and Other Information Documentation to the Exchange; Rulebook of the Exchange 2015, (Issuers Rules), as Guinea Insurance Plc was fined N453,600 for failing to “utilize the issuers portal to file sensitive information.”