The Securities and Exchange Commission (SEC) said on Wednesday it has ordered the suspension of Oando shares citing concerns about possible insider trading and the oil company’s shareholding structure, Reuters reports.
The SEC ordered the Nigerian Stock Exchange (NSE) to implement a 48-hour suspension of Oando’s shares after which it would implement a price freeze until further notice. Oando, with dual listings in Johannesburg and Toronto, said it would issue a statement in due course. Its shares last traded at N5.99 in Lagos.
The regulator said it had carried out a comprehensive review of Oando after it received two petitions and found related party transactions were not conducted at arm’s length and discrepancies in its ownership structure. It said a team of auditors, lawyers, stockbrokers and share registrars would conduct the forensic audit on Oando to ensure independence.