The Nigerian Stock Exchange has announced the removal of NEM Insurance Plc (NEM Insurance), Continental Reinsurance Plc and Diamond Bank Plc, from the NSE Corporate Governance Index.
The NSE said that the name of the institutions would be removed with effect from January 1, 2019.
The NSE launched the Corporate Governance Index of The Nigerian Stock Exchange (NSE CG Index) during the inaugural Corporate Governance Rating System (CGRS) certification ceremony in February 2018.
In its explanation, the Exchange explained that its Index Governance Committee 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, 19 November 2018.
Additionally, it said in view of the recent governance issues with Diamond Bank, the Index Committee also removed the Bank from the NSE CG Index.
The Index Committee also took decision 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 capitalization, free float and corporate governance rating scores.
The Index is reviewed on a biannual basis at which point 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have become CGRS rated in the interim may be added to the Index or companies that have had their ratings suspended or withdrawn may be removed.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 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.
