Do you know you can buy and sell shares of companies not listed on the Nigerian Stock Exchange such as Friesland WAMCO, MTN, Jaiz bank, Golden Capital etc. This is made possible with the introduction of a formal OTC market named NASD PLC whicj licensed by the Securities and Exchange Commission to operate as platform to raise capital for companies with tradable shares not listed on the exchange.

Even currently, if you have shares of companies that are delisted on the exchange, these shares can be traded for liquidity sake or capital raising. Investors can now express total joy for the introduction of a formal OTC market in the Nigerian Capital market. This will bring about transparency and price discovery of currently traded public companies in the black.

NASD PLC is the promoter of a Trading Network that eases secondary market trading of all securities of unquoted public companies primarily in Nigeria but with a focus on the West African region. Our intention is to stimulate growth by easing the capital raising process. We bring together all stakeholders in capital flows to a common environment where interactions are safe, efficient, transparent and appropriately priced. Operators in our environment include Issuers of equity and fixed income instruments, Institutional and individual investors, a growing pool of accredited Authorised Traders and their Participating Institutions, Settlement banks, Clearing systems, private equity and venture capital firms with a view to increasing liquidity in the unquoted segment of the long term funding market.

Should you have further queries, please feel free to drop your queries here or visit the website.

http://www.nasdng.com

welcome development

Fantastic news....

We are getting there, this is what the market needs. It was nice to know also that a firm in Lagos just introduced the First ONLINE-REAL TIME MorganCapital iTrade, trading platform in Nigeria where you can execute your trades directly on the Nigerian Stock Exchange without any human interference, with full access to market data & Analytics as its happemimg. the brokerage fee is also ridiculously low at 0.25%.

We need liquidity in this market, our stock market must improve.

NASD PLC FAQ
Question: What is NASD?
Answer: NASD is an acronym for National Association of Securities Dealers. It is focused on providing a technologically driven trading platform where shares of companies not listed on the Nigerian Stock Exchange (“NSE”) are traded.

Question: Is NASD subject to any form of regulation?
Answer: Yes, NASD is primarily regulated by the Securities & Exchange Commission (“SEC”) and it is also a self-regulatory organization just like the NSE.

Question: What is the difference between NASD and the NSE?
Answer: The NSE provides the platform for trading on quoted securities while NASD only deals with un-quoted securities.

Question: What is the difference between quoted and un-quoted securities?
Answer: Quoted securities are securities that are listed/traded on an organized exchange like the NSE while un-quoted securities are those traded in an OTC market.

Question: What is an OTC Market?
Answer: An OTC (over-the-counter) market is an off exchange market which trades unlisted securities.

Question: What is the advantage of the NASD OTC Platform?
Answer: It provides liquidity for un-quoted securities and provides a transparent avenue for trading in same.

Question: Do I have to open an account different and distinct from my current Central Securities Clearing Systems (“CSCS”) account?
Answer: Yes, an account has to be created and domiciled with your stockbroker who is registered by NASD PLC as a participant on the OTC market. Also at CSCS, a different account for OTC securities will be opened for your OTC trades.

Question: How long does it take for transactions to be settled?
Answer: Transactions settle on T+3 basis, just like on the NSE.

Question: Is it all un-quoted securities that can be traded on the NASD OTC platform?
Answer: No. Before any un-quoted security can be traded, the Company must have met the following eligibility criteria:
The Company must have been in operation for a year.
It must be a public company or be held by more than 50 beneficial owners.
The security must be registered with SEC
The security must be freely transferable.
It must not have any legal or regulatory restriction that prevents it from being traded in the market.
Question: How long will it take to verify the certificates of companies whose securities are un-quoted?
Answer: Certificate verification will generally take about 48 hours from the day the Broker forwards it to the Registrars. However, in some cases where there are issues on the sellers signature mandate, it may take a little longer.

Process Flow : Certificate Dematerialization For Un-Quoted Securities
Stage 1. Broker creates an investment account for prospective clients.
Stage 2. Broker collects; i. Certificate(s) from investor ii. Signed transfer forms/authority to dematerialize.
Stage 3. Broker delivers the certificate accompanied by the transfer form/authority to dematerialize to the Registrars.
Stage 4. Registrar notifies the Broker when verification is complete and credits the clients’ account at CSCS with the shares.
Stage 5. Broker commences trade on the security from the next day.

The board of NASD plc is in discussion with GTI Securities Limited on possible areas of cooperation around securities trading using GTI Securities private trading floor.
NASD plc believes the partnership will help deepen Nigeria’s capital formation and create opportunities for more participation in Nigerian capital market.
Chike Nwanze, vice chairman, NASD Plc who led other directors of NASD plc on a courtesy visit to Nigeria’s first private trading floor built by GTI Securities in Lagos, said the NASD and GTI have complementary roles in deepening Nigerian capital market and would work together to achieve this common goal.
Nwanze, who is also the vice chairman and chief executive officer of Icon Stockbrokers Limited, described the GTI’s trading floor as “one of the greatest contributions that has come to our market” and applauded the dynamism of the GTI in ushering in a new era of development for the Nigerian capital market.
Bola Ajomale, managing director, NASD plc said NASD will work closely with GTI to explore the concept of its private trading floor, which he described as a “highly imaginative, state-of-the-art, world-class, first-of-its-kind” platform.
“We are very excited about this, it has really set a standard and we want to move closer to see how we can partner with GTI. I believe that the mind that put this together is not empty yet, it still has much more to come out of it,” Ajomale said.
Abubakar Lawal, group managing director, GTI Capital Group said the group has put together a network of financial resources and expertise to energise Nigerian companies and assist professional financiers to effectively perform their functions.
Tunde Oyekunle, managing director, GTI Securities pointed out that the trading floor is fitted with cutting-edge technology that allows seamless interconnectivity with the NSE and other exchanges as well as settlement agents and banks for real time online trading and straight through processing of transactions.
Abayomi Sanya, managing director, Goldbanc Asset Management Limited also reiterated his support for GTI pointing out that it has changed the growth curve of the Nigerian market as many operators are now reviewing their growth plans.