By OLUSHOLA BELLO, Lagos
NASD OTC has announced the admission of its shares of the recently demutualized Nigerian Stock Exchange under the security code SDNGX.
Chief executive officer of NASD Plc, Bola Ajomale explained that NASD was providing an avenue for the new holding company, NGX Plc to comply with the requirements of the Rule on Trading Public Unlisted Securities, saying that the rule makes it illegal to transfer the shares of a public company outside a public SEC recognised platform.
Also, head of Operations and IT at NASD, Ms Chinwe Ekeh said, “The two methods of entry into the OTC market as an Issuer. The first is an Admission of Company which is akin to a full listing while the second is an Admission of Security where individual shareholders can indicate an interest to trade the shares. NGX shares were introduced into the market under the latter arrangement by Icon Stockbrokers Limited who advised an opening price of N25 per share.”
The head of Depository Services in CSCS, Yahaya Babangida advised that all beneficiaries of the demutualised entity have been credited either directly into their own Trading accounts or an escrow account under the registrars.
Speaking on the inter member process, which is the transfer of account process, head, Clearing and Settlement Operations (CSCS), Mr. Folagbade Adeyemi said, “This process enables an investor to move their trading account from one dealing participant to another. This is a KYC driven process; the investor moves their account from the resident broker to the target broker. Once KYC document is completed and due diligence done transfer and trade can be done by the preferred broker.”
NASD Plc is a self-regulated organization licensed by the Securities and Exchange Commission (SEC) to operate an OTC Securities Exchange Market however, NASD provides a vast range of services such as, NASD Enterprise Portal (NASDEP), which is designed to ease the capital raising process for high growth companies, while further offering accredited Investors access to high yield potential investments.