Thirteen new traders representing various stockbroking firms were inducted into the NASD Over-the-Counter market last week, the NASD Plc said.

The development brings the total number of registered traders of participating institutions to 137, according to the company.

The 13 traders are from African Alliance Limited, Apel Asset Limited, Crown Capital Limited, Dominion Trust Limited, and Fortress Capital Limited.

Others are Integrated Trust and Investment Limited, Nigerian Stockbrokers Limited, Perfecta Investment and Trust Limited and TRW Stockbrokers Limited.

The NASD said in a statement that the individuals had completed their membership requirements with it and were inducted to trade in the market.

Currently, of the 19 securities trading, 18 are admissions to trade (investor led) and one is issuer led.

The NASD Plc, which is licensed by the Securities and Exchange Commission to operate an OTC market for unlisted securities, explained that “the primary aim of NASD OTC Market is to create liquidity for all publicly held securities in a transparent manner, thereby ensuring a standardised price discovery mechanism for the securities being traded.”

As of Friday, the platform which commenced operations last year had a market capitalisation of N593bn, total share capital of 83 billion, while volume dematerialised of two billion.

The volume of trade stood at 120 million , the number of trades was 444, while value traded was N2.37bn.

The NASD also clarified confusion over what it means to admit a company and admission to trade.

When it comes to admission of a company, it said, “The issuer or company applies to NASD for listing. The company is under NASD regulation. All the shares of the company are accepted into the market and the issuer undertakes that these shares cannot trade outside NASD OTC. This model is great for companies who will eventually raise more funding.”

As for admission to trade, it said, “An individual shareholder presents her certificate in an unlisted company to an OTC participating institution. The participants will open the security to trade on the OTC. “More individuals will follow suit and eventually create a healthy dynamic market. The NASD is not a direct regulator of the company in this circumstance.”

This model is popular with shareholders of unlisted shares who want access to an open transparent and fair public market.”

As an OTC market, NASD applies both models of admission.

Punch