The Nigerian Stock Exchange, NSE, says it has removed three companies, Diamond Bank, NEM Insurance and Continental Reinsurance from its Corporate Governance Index.
The companies ceased to be on the NSE CG Index from Tuesday, January 1, 2019.
A statement issued by the NSE management explained that Diamond Bank and NEM Insurance lost their NSE CG Index status because of corporate governance issues while Continental Reinsurance, voluntarily applied for its shares to be delisted from the NSE.
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The statement read: “The Index Governance Committee of the Exchange resolved to remove NEM Insurance from the NSE CG Index following the suspension of the CGRS rating of the company by the Steering Board of the CGRS on Monday, November 19, 2018.
“Additionally, in view of the recent governance issues with Diamond Bank, the Index Committee has decided to remove the bank from the NSE CG Index.
“The Index Committee also decided to remove Continental Reinsurance Plc from the NSE CG Index following the company’s application to The Exchange to delist from the Daily Official List of The Exchange.”
The NSE CG Index tracks the performance of CGRS-rated companies using their market capitalisation, free float and corporate governance rating scores and is reviewed bi-annually during which other companies that have become CGRS-rated in the interim may be added to the Index or companies that have had their ratings suspended or withdrawn may be removed.
The NSE CG Index is expected to be an important tool for investors keen on investing in well-governed companies as well as corporates eager to distinguish themselves on the ground of governance. The Corporate Governance Rating System (CGRS), launched on November 3, 2014, is a joint initiative between the NSE and the Convention on Business Integrity (CBi). It was developed to rate the corporate governance and integrity practices of all companies listed on the NSE.