Securities of Spring Mortgage plc and ARM Properties plc were introduced to the NASD OTC market last week by Primera Africa Securities Limited and Mega Equities Limited, respectively, bringing the total number of admitted securities on the platform to 21.
According to the Securities and Exchange Commission (SEC) in its Nigerian Capital Market Masterplan (2015-2025), an effective and newly revised regulatory framework will promote growth and development for a sophisticated capital market. Essentially, such regulation should enable a seamless operation for trading and allocation of capital.
The SEC indicated that to achieve this goal, increased efforts will be applied to create a lively and competitive market by updating or amending its rules hindering market growth. Steps have already been taken to this end in view of the rule on trading unlisted securities on the platform of a recognised exchange.
Currently, the NASD OTC market has 21 securities trading out of a possible 101 unlisted securities, which have been registered with SEC while there is the presence of 185 companies yet to register their securities with SEC. In practical terms, 79.2 percent of unlisted securities that are eligible to trade are yet to be traded on a SEC-recognised platform.
The shift in trade of such securities to an OTC market will ultimately allow for a system of clarity and easy reference in the future, in line with the journey to a sophisticated capital market, according to NASD OTC.
