What happened to investors as NSE delists Skye Bank, Fortis MFB?
Some shareholders recently asked what would happen to their share certificates given the drama around defunct Skye Bank Plc and Fortis Microfinance Bank.
Most times, when people buy stocks without stockbrokers acting as their advisers, such deals tend to burst out. NSE said it has delisted these the two banks from its daily official listing pursuant to Clause 15 of the General Undertaking,
…Appendix III of the Rule Book of the Nigerian Stock Exchange, 2015, from the Daily Official List of The Nigerian Stock Exchange today, Wednesday, 21 August 2019.
The Exchange notified that the delisting of the afore-listed companies was approved by the National Council of the Exchange on Thursday, 30 May 2019, in line with the regulatory delisting process.
This is as a result of the revocation of their operating licences by their primary regulator, the Central Bank of Nigeria. So, what happened to shareholders?
Equity holdings confer rights and liabilities to the extent of the amount invested or, rather, the number of shares investors is holding.
You can’t gain or lose more than the risk you have accepted.
Basically, share certificates of the two banks are no more valid for transactions in whatsoever manner.
What this means is that, despite the fact that defunct Skye Bank Plc assets are physically available, but its liabilities is far bigger than its net assets. Technically speaking, shareholders have lost out. Their invested amount is now history.
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What happened to investors as NSE delists Skye Bank, Fortis MFB?
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