The NASD Plc has welcomed the decision of the Securities and Exchange Commission to extend the notification deadline for capital market operators that are considering reclassification of function, reduction of functions or mergers and acquisitions in view of the recapitalisation exercise.
SEC had last week in a circular to market operators entitled ‘New minimum capital requirement: Extention of notification and procedure for reclassification/reduction of registered functions, mergers and acquisitions’, said it had extended the deadline from July 31 to August 31, 2015.
It had also reviewed the procedures on the various options “to ensure a seamless and less rigorous exercise”.
Reacting to the extension, the NASD said in a statement that it would enable more market operators to meet the new capital market requirement announced by SEC.
“We expect that this extension will give more CMOs registered as participating institutions on the NASD OTC Market the opportunity to meet up with the new capital requirements of the SEC,” the NASD, which runs an over-the-counter market for unlisted securities, said.
Meanwhile, NASD Plc said five participating institutions were given approval to join its over-the-counter market last week, bringing the total number of participating institution on the platform to 107.
Participating institutions are licenced stockbroking firms registered with the NASD OTC Market through whom investors can buy and sell securities on the platform.
According to the NASD, the new participating institutions on the platform include Bestworth Assets and Trust Limited, Capital Express Securities Limited, and EFCP Limited.
Others are Mayfield Investments Limited and Mutual Alliance Investment and Securities Limited.
The NASD is licensed by the SEC to trade a broad range of instruments over-the-counter, including bonds and securities not listed on the Nigerian Stock Exchange.
The company had last week said it was pleased with the progress made in the OTC markets since it commenced operations, expressing the hope that investors would get greater returns as more securities get traded on the platform.
“We are delighted with the level of corporate governance and management of companies whose securities are trading on the OTC market,” it had said.
As of Friday, August 21, the NASD said the Unlisted Securities Index closed at 989.24 points as against the previous close of 974.72 points.
The NASD currently has 22 admitted securities, 171 registered brokers and 107 participating institutions.
Its market capitalisation stood at N522.95bn with total share capital of N104bn.
All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from PUNCH.
Source : Punch