Stockbrokers want more unlisted securities trade on NASD platform

Stockbrokers in Nigeria’s capital market have seen the need for more collaboration between the Securities and Exchange Commission (SEC) and NASD Plc in getting all companies that did private placements trade their shares on NASD OTC platform.

Recently, SEC introduced a new rule which prevents the sale of the shares and securities of unlisted public companies perform outside the SEC-registered securities exchanges.

The rule is one of six new rules and regulations approved by SEC aimed at encouraging trading in the formal over-the-counter market and transparency in the capital market as a whole.

Some stockbrokers, who spoke at NASD stakeholders meeting in Lagos frowned at most unlisted public companies that failed to disclose their information to shareholders, noting that the stock market is driven by information.

Kasimu Garba Kurf, managing director/chief executive officer, APT Securities and Funds Limited, said, “The market needs to do a lot of work on issuers (companies) to have access to their information. This market is information driven.” Emeka Madubuike, managing director, Compass Securities Limited, said, “NASD needs to go back to SEC and ask for all the companies that did private placements in the market to increase the number of tradable securities in this market.”

It was learnt that out of about 400 registered unlisted public companies that are tradable on the NASD OTC platform, only 19 companies are currently available, representing less that 5% of the registered unlisted public companies.

Ariyo Olushekun, vice chairman/CEO, Capital Assets Limited, said, “There are several big companies that would not like to be quoted”.

“Besides, this market is huge and we can collectively grow it,” said Olushekun, who is also the chairman AbujaFinance and General Purposes of NASD Plc.

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 are still committed to being central hub for capital formation in West Africa,” said Bola Ajomale, managing director/CEO NASD Plc.