The Securities and Exchange Commission (SEC) has directed the Nigerian Stock Exchange to place the shares of Oando Plc on technical suspension.
A statement by the management of the commission on Wednesday said the company would be suspended due to several complaints against it by shareholders in the capital market.
Technical suspension is the interruption of price movement in listed shares for a specified period of time.
Once the security is suspended, shares of that security cannot be traded on the market until the suspension is lifted or lapses. The exact amount of time for the suspension will be determined on a case-by-case basis.
According to the statement, one Alhaji Dahiru Mangal and Ansbury Incorporated filed a case against Oando before the SEC.
It said the commission carried out a comprehensive review of the petitions and found out the company allegedly breached the provisions of the Investments & Securities Act 2007.
It alleged that Oando breached the SEC’s Code of Corporate Governance for Public Companies and was also guilty of suspected insider dealing.
“The Commission’s primary role as apex regulator of the Nigerian Capital Market is to regulate the market and protect the investing public.
“SEC notes that the findings are weighty and need to be further investigated and after due consideration, 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 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 the interest of all shareholders of Oando Plc are preserved during the course of the exercise, SEC directed the NSE to place the shares of Oando Plc on technical suspension,’’ it said.
The statement noted that was not technologically feasible for the Exchange to effect a technical suspension on Oando except after 48 hours.
It, however, stated that the SEC had directed that effective from 48 hours from Wednesday, the NSE should implement a full suspension in the trading of the shares of Oando Plc.
It further said that effective from Oct. 20 and until further directive, the exchange should implement a technical suspension in the shares of Oando Plc.