NASD Begins Classification of Listed Stocks April 27
By Modupe Gbadeyanka
The management of NASD OTC Market has disclosed that it would commence the first review of securities listed on its platform.
Last year, the market started a classification of NASD OTC admitted securities into categories that reflect the level of financial disclosure, adherence to corporate governance standards, dematerialisation of shares and liquidity of the 36 securities trading on the OTC Market.
At the end of this exercise, 12 securities were ranked in the Blue Category, eight in the Pink Category, and 15 were in the Red Category.
In a statement issued last Friday, NASD noted that in line with its efforts to promote transparency, it would conduct a first review of all securities on the OTC Market on Friday, April 27, 2018.
“This review will update the categorisation rankings in response to changes in compliance levels,” it said.
“We believe that this service will enhance transparency on the inherent value in such companies, improve levels of investor confidence and also, improve activities on the OTC Market,” the statement added.