The Nigerian Exchange Regulation Limited (NGX RegCo) has suspended trading in the shares of Sterling Financial Holdings Company Plc to allow for the reconciliation of the company's reconstructed equities. This decision was made to ensure that the relevant records are properly aligned before trading resumes. The suspension was disclosed in a notice signed by Bonaventure Onwuji on behalf of the Head of the Issuer Regulation Department.
According to the regulator, Sterling Holdings' registrars and the Central Securities and Clearing System Plc (CSCS) are working together to reconcile their records following the reconstruction of the company's shares. This process aims to establish the shareholders entitled to receive the reconstructed shares. The reconciliation exercise is crucial to prevent any irregularities in the trading of the company's shares.
The suspension took effect on Wednesday, September 23, 2026, and will prevent trading in the shares during the reconciliation process. NGX RegCo stated that the action would allow the registrars and CSCS to complete the reconciliation required for the listing of the reconstructed shares on the Nigerian Exchange. This step is necessary to ensure the accuracy and integrity of the company's records.
The regulator emphasized that the suspension is also required for the purpose of determining the shareholders who are entitled to receive the reconstructed shares. Sterling Financial Holdings is the holding company of Sterling Bank and is listed on the NGX. The suspension does not represent a permanent delisting of the company's shares but is intended to facilitate the administrative and settlement processes associated with the reconstructed equity.
NGX RegCo did not state in the notice when trading in Sterling Holdings shares would resume, indicating that the suspension will remain in place pending completion of the reconciliation process. The regulator is working closely with the company's registrars and CSCS to ensure that the process is completed as soon as possible. This will enable trading in the shares to resume in a timely manner.
The suspension of trading in Sterling Holdings shares is a precautionary measure to ensure the integrity of the company's records and prevent any potential irregularities. The company's shareholders will be informed of any developments regarding the suspension and the reconciliation process. NGX RegCo is committed to maintaining transparency and fairness in the trading of securities on the Nigerian Exchange.
The incident highlights the importance of accurate record-keeping and reconciliation in the trading of securities. The NGX RegCo's decision to suspend trading in Sterling Holdings shares demonstrates its commitment to upholding the highest standards of integrity and transparency in the capital market. The regulator will continue to work with market participants to ensure that trading activities are conducted in a fair and orderly manner.
Key points
- NGX Regulation suspends trading in Sterling Financial Holdings Company shares to facilitate reconciliation of reconstructed equity.
- The suspension aims to ensure accurate record-keeping and prevent irregularities in trading.
- Trading in Sterling Holdings shares will resume once the reconciliation process is completed.
