The NASD OTC Platform is an electronic inter-dealer quotation system that displays historical price data, current price quotes, and market depth information on all long term securities registered by the Securities and Exchange Commission but not listed on any other exchange in Nigeria. The platform provides an avenue for securities to be traded without the issuer being listed thereby providing more transparency and ultimately liquidity to the shareholder and the capital market in general.

All instruments of Public Unlisted Companies are accommodated on the OTC Market via any of the two modes of admission on NASD. The modes of admission on NASD are:

• Security Admission. This process is Investor-led. Shareholders of a Public Unlisted Company {“Issuer/Company”] whose shares are not listed on any other Exchange and wish to trade their shareholding shall appoint a Participating Institution i.e. Broker/Dealer to introduce the securities to NASD. This mode of admission does not require active participation of the Issuer. A partial dematerialization of the Company’s register with CSCS i.e. the Investor’s shareholding shall be dematerialized into CSCS is required.

• Company Admission. This process is Issuer-led, and the shares of the Company is not listed on any other registered Exchange. The issuer shall appoint a Participating Institution i.e. Accredited Issuing House. This mode of admission requires active participation/compliance of the Issuer. The full register of the Company is dematerialized with CSCS.

Between one and two weeks (subject to compliance with the Rules and requirements) depending on the mode of admission.

The requirements for admitting a company and security on the NASD OTC market is available here and here on NASD official website. Companies are placed into one of three categories; the Blue tier, the Pink tier, and the Red tier depending on the level of disclosure which a company has provided to the market. Companies that are backed by high levels of corporate governance and current audited financial statements are placed in the Blue category; companies with low levels of governance are placed in the pink Category while companies who are not compliant are placed in the Red category.

NASD as a Self-Regulatory Organization [“SRO”] has regulatory oversight function over all admitted securities as well as eliciting ongoing disclosure requirements from the admitted securities. The regulatory function NASD plays depends on the mode of admission. Under Security admission, the Company is not obligated to comply with NASD Rules but encouraged to disclose corporate action notices and financial statements; while under Company admission, the Company signs an undertaking to comply with the Rules and Regulation of NASD.

NASD platform has encrypted login access, security certificates, clustering, and replication of environment for continuous market availability.

The NASD Securities Exchange is regulated by the Securities and Exchange Commission [“SEC”] and is also a Self-Regulatory Organization [“SRO”].

1. Brokers, Broker/Dealers Firms registered with NASD introduce securities and make market (either buy or sell). Kindly click here to view a list of all Licensed Broker/Dealer Firms.

2.  Accredited Issuing Houses are licensed with NASD to provide financial and Investment advice to Issuers about participating on the OTC market. Kindly click here to view a list of accredited issuing houses.

3. 6 Settlement banks act on behalf of the Broker/ Dealers to ensure that all deals are settled and paid for on the appropriate transaction date. Kindly click here to view appointed settlement banks.

4.  The Central Securities Clearing System [“CSCS”] is the central depository for NASD OTC market and ensures completion of delivery of transactions.

Trades can be executed on NASD OTC market between the hours of 10.00 a.m. and 3.00 p.m. on weekdays (except for public holidays)

The rules and regulations of the NASD OTC market are designed to protect investors, regulate the activities of Participating Institutions, and create an orderly environment for efficient trading of unquoted securities. This is readily available and accessible on the NASD official website here.

– Transparency in trade which enhances investors’ confidence. 
– A centralized platform for price discovery 
– A source of long-term funding for companies 
– Access to broad range of asset classes » Access to specialized market data 
– Innovation of new and unique investment solutions 
– Increased corporate visibility which brings economies and savings. 
– Improved investor / Shareholder relations

NASD’s administrative control facility carries out surveillance on market activities. Trader activity is actively monitored both on and off the trading platform.

The integrity of the market is critical to the continued growth of OTC market in Nigeria. Defaulters will face sanctions, fines and/or suspension from trading as may be imposed by the NASD Disciplinary Committee.

NASD has established a Disciplinary Committee to handle disputes on the market and have put in place rules and regulations guiding market activity. Investors can submit complaints or report any market infraction directly to NASD or via email to whistleblowing@nasdng.com. The Disciplinary Committee shall investigate the complaints, give both sides an opportunity to be heard and decide on the issue.

Transfer and trading refer to the same thing, the two words both mean change of ownership of a share certificate.

While daily information/data of the NASD OTC Market can be accessed on the official website www.nasdng.com, historical market data/information can be accessed on the NASD Data portal on a subscription plan.

All enquiries on dividends of the admitted securities on NASD OTC Market are to be routed/channeled through the registrars of these companies or via your brokers.

Upon receipt of an application for Admission, NASD undertakes due diligence activities to ensure the securities are registered with the Securities and Exchange Commission; and are not listed on any other Exchange.

Yes. However, the Brokerage firm shall not co-mingle accounts; separate accounts will be opened to operate on the two markets.