NASD OTC Introduces ‘Blue’ Securities

December 1, 2017
NASD OTC Securities Exchange

By Dipo Olowookere

The management of National Association of Securities Dealers (NASD) over-the-counter (OTC) Securities Exchange has announced the introduction of ‘Blue’ securities on its trading platform.

NASD described this as a form of classification of admitted securities on its platform by level of disclosure, corporate governance and financial responsibility.

It termed the ‘Blue Category’ as shares of companies with a history of sound financial performance, explaining that these companies display a high level of corporate governance by timely disclosure of their financial statements, regular communication with shareholders and meet the minimum requirements of the Securities and Exchange Commission (SEC).

On the other hand, ‘Pink Category’ comprises shares of companies that do not comply with the minimum disclosure and reporting requirements of SEC and NASD.

It noted that companies under this category may not have current information available to the public.

In its weekly newsletter, NASD disclosed that as at Thursday, November 30, 2017, only 12 out of 34 securities met the criteria for the Blue Category, representing 32 percent of the securities admitted to trade on the OTC Market.

“These securities account for 18 percent of the volume and 91 percent of the value traded on the OTC Market year-to-date,” NASD stated.

The firms under the ‘Blue Category’ are Afriland Properties Plc, Air Liquide Plc, ARM Life Plc, CR Services (Credit Bureau) Plc, Central Securities Clearing System (CSCS) Plc, Ensure Insurance Plc, Friesland Campina Wamco Nigeria Plc, Mixta Real Estate Plc, NASD Plc, Niger Delta Exploration & Production Plc, NIPCO Plc, and Nigeria Mortgage Refinance Company Plc.

NASD Plc is the trading platform for the securities of all unquoted public companies in Nigeria.

Dipo Olowookere

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

Mr Olowookere can be reached via [email protected]

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