Securities Dealers Association Launches OTC Market

Companies that are not listed on the Nigerian Stock Exchange (NSE) but crave to be traded on the over-the-counter (OTC) market now have cause to cheer as the National Association of Securities Dealers (NASD) Plc officially launches its OTC platform.

While the OTC platform will be launched today, trading will commence tomorrow.

Bola Ajomale, the Chief Executive Officer of NASD Plc, said the NASD OTC market is to fuel economic growth whilst also creating value for stakeholders and the investing public.

“NASD OTC will offer investors a platform from where they can obtain information on available investments that are not listed on the Nigerian Stock Exchange. This information includes prevailing prices/or last deal price on any security that they are interested in. It will also provide financial performance of non-listed companies and corporate governance of companies that hitherto might not be in the public domain,” Mr. Ajomale said.

In the meantime, companies such as Heirs Holdings, a pan-African investment company, are already taking strategic stake in the new NASD OTC.

NASD investment will now be added to Heirs Holdings’ financial services investment portfolio, which includes the pan-African United Bank for Africa; UBA Capital, the group’s listed investment banking and asset management arm; Africa Prudential Registrars Plc, the only listed share registrar company in Nigeria; and Heirs insurance brokers.

Oscar Onyema, the Chief Executive Officer of the NSE, had, few weeks back, thrown his support for the establishment of NASD and FMDQ OTC markets.

Mr. Onyema, who explained that the NSE has investments in the two companies, said he believed the two platforms will make the capital market more robust. “With those two markets working together, we will have appropriate price discovery and bigger coverage across the country,” he said.