What is NASD?
NASD is an acronym for National Association of Securities Dealers. It is focused on providing a technologically driven trading platform where shares of companies not listed on the Nigerian Stock Exchange (“NSE”) are traded.
Is NASD subject to any form of regulation?
Yes, NASD is primarily regulated by the Securities & Exchange Commission (“SEC”) and it is also a self-regulatory organization just like the NSE.
What is the difference between NASD and the NSE?
The NSE provides the platform for trading on quoted securities while NASD only deals with un-quoted securities.
What is the difference between quoted and un-quoted securities?
What is an OTC Market?
An OTC (over-the-counter) market is an off exchange market which trades unlisted securities.
What is the advantage of the NASD OTC Platform?
Do I have to open an account different and distinct from my current Central Securities Clearing Systems (“CSCS”) account?
Yes, an account has to be created and domiciled with your stockbroker who is registered by NASD as a participant on the OTC market. Also at CSCS, a different account for OTC securities will be opened for your OTC trades.
How long does it take for transactions to be settled?
Transactions settle on T+3 basis, just like on the NSE.
The charges above are exclusive of stamp duty and VAT.
N4.00 is charged for sms per deal
Is it all un-quoted securities that can be traded on the NASD OTC platform?
No. Before any un-quoted security can be traded, the Company must have met the following eligibility criteria:
How long will it take to verify the certificates of companies whose securities are un-quoted?