NASD intensifies efforts to protect OTC investors

The NASD has intensified efforts to ensure transparency, integrity and investor protection on the OTC Securities Exchange.   

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.

It has established a Complaint Management Framework to manage complaints made by investors against institutions trading on its platform in line with the requirements of the Securities and Exchange Commission (SEC).

As at trading week ended May 27, the NASD OTC Securities Exchange recorded twenty-seven (27) admitted securities; 206 registered brokers; 114 participating institutions (PIs); N431.05billion in market capitalization; total share capital of 107.64 billion; and 16.75 billion dematerialized shares representing 15.56 percent. The volume of trades (YtD) stood at 344.81 million units; number of trades (YtD) at 1,719; while value of stocks traded (YtD) on the NASD OTC platform was put at N1.75 billion.

“Investors with valid complaints against any of the NASD Participating Institutions or members are encouraged to first explore possible resolution of the complaints with the Participation Institution and to refer such complaints to NASD where no satisfactory resolution is reached,” said NASD which has the intention to stimulate growth by easing the capital raising process while also bringing together all stakeholders in capital flows to a common environment where interactions are safe, efficient, transparent and appropriately priced.

“All complaints received by NASD shall be investigated under the direction of the Disciplinary Committee and Board (as required) and resolved in a fair and equitable manner,” the NASD noted.

The Disciplinary Committee of NASD is the committee appointed by the Board to hear complaints and determine disciplinary actions against erring members and their employees.