NASD admits NGX shares on platform
NASD OTC has admitted the shares of the recently-demutualised Nigerian Exchange Limited (NGX) SDNGX. At a virtual interactive session organised by NASD Plc in collaboration with the Central Securities Clearing System PLC (CSCS), the Chief Executive Officer of NASD Plc, Bola Ajomale, explained that NASD would provide an avenue for the new holding company (NGX Plc) to comply with the requirements of the rules on trading public unlisted securities.
According to him, the rule makes it illegal to transfer the shares of a public company outside a platform recognized by the Securities and Exchange Commission (SEC).
Head of Operations and IT, NASD, Chinwe Ekeh, explained the two methods of entry into the OTC market as an issuer which includes admission of company, which is akin to a full listing, and admission of security, where individual shareholders can indicate an interest to trade shares.
She explained that the latter entry method allowed NASD to open a new code SDNGXGROUP within 48 hours after the share is made available to shareholders.
The Head of Depository Services in CSCS, Yahaya Babangida, said that all beneficiaries of the demutualised entity have been credited either directly into their trading accounts or an escrow account under the registrars.
Shareholders can obtain information on their balance from the CSCS website, he said. Head, Clearing and Settlement Operations CSCS, Folagbade Adeyemi, who spoke on the inter-member process, said the process enabled an investor to move their trading account from one dealing participant to another.
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