The Nigerian Stock Exchange (NSE) has expelled Diamond Bank, Continental Reinsurance Plc and NEM Insurance Plc from its Corporate Governance Index.
This was revealed in a statement by the NSE recently where it noted that the removal took effect from the beginning of the New Year, 2019.
According to the NSE, the Index Governance Committee of the Exchange barred NEM Insurance after the suspension of the Corporate Governance Rating System rating of the company by the steering board of the CGRS on 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 NSE statement partly read.
“The committee also decided to remove Continental Reinsurance from the NSE CG Index following the company’s application to the Exchange to delist from the daily official list of the Exchange.”
The statement noted that the CG Index was launched on February 22, 2018, and tracks the performance of CGRS-rated companies via their market capitalisation, free float and corporate governance rating scores.
In addition, it added that the index was important so that investors will have interest in well-governed companies.