NASD FAQ

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.

Buy

Sell

CSCS Fee

0.00

0.20

Sell

SEC Fee

0.20

0.00

Sell

NASD

0.25

0.25

Sell

Brokerage Commission

1.35

1.35

Sell

Total

1.80

1.80

Sell

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:

  1. The Company must have been in operation for a year.
  2. It must be a public company or be held by more than 50 beneficial owners.
  3. The security must be registered with SEC
  4. The security must be freely transferable.
  5. It must not have any legal or regulatory restriction that prevents it from being traded in the market.

How long will it take to verify the certificates of companies whose securities are un-quoted?

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