NASD Plc has announced that it will partner the Securities and Exchange Commission  and other regulators to reduce market infractions.

The Managing Director, NASD, Mr. Bola Ajomale, announced this at a media briefing in Lagos on Friday.

He said the company had also entered into an agreement with the Central Securities Clearing System to enhance transparency in dealings in the Over-the-Counter bond market.

According to him, the company’s operations will help to sustain the country’s growth rate of seven per cent per annum by offering more liquidity in investment instruments to the Nigerian capital market.

Ajomale explained that with N500m share capital base and 40 stockbrokers already registered with it, NASD was well-positioned to sustain real growth in major sectors of the economy.

He explained that its operations would commence on July 2, 2013, after its inauguration on July 1.

“We are going live on July 2 and the excitement in the market is great because the NASD platform will complement the activities of the NSE and make the capital market more robust and attractive,” he said.

Ajomale, who disclosed that several companies had indicated interest to have their shares traded on the platform, added that shareholders of unlisted companies were very excited to trade their shares on the platform even as there would not be any circuit breakers on its share trade.

He said NASD had reached agreement with the Nigerian Stock Exchange and CSCS to use their trading  and clearing facilities, respectively, as well as First Bank Plc, Guaranty Trust Bank Plc, United Bank for Africa Plc, Stanbic IBTC Bank, Access Bank Plc and Sterling Bank Plc as settlement banks for the trading.

Ajomale explained that the way the OTC market worked was for investors in public quoted companies who wanted to sell their shares to give them to a broker, who would list the offer on the NASD platform and anyone buying would also contact a broker to put in a bid on his behalf.

He said, “Our vision is to be open to everybody across the world. We will have a platform that is user-friendly. We have reached the final arrangement with the NSE. We are going to be leasing part of their trading platform.

“This market is not a listing market. You just come, do your deal and move on. OTC markets, like NASD, will provide the exit for the Plc stocks that are not listed. The market will also be a place to buy and sell bonds, especially the state and corporate debentures that have little liquidity.”

Source: Punch (by Udeme Ekwere)