About 40 stockbrokers have been registered to facilitate trading of unlisted equities and bonds as the NASD Plc prepares to commence trading on July 2.
The NASD is approved by the Securities and Exchange Commission (SEC) to operate an over-the-counter (OTC) in Nigeria, which investors in unlisted companies can trade their securities.
Speaking on the commencement of operations, Managing Director of NASD Plc, Mr. Bola Ajomale, said 40 brokers had been registered to trade on the market.
Anomalies added that more would be admitted in future.
According to him, the formal launching of the market would take place on July 1, while trading would commence July 2.
Ajomale said the company would offer investors the opportunity to buy and sell non-listed securities in an organised and transparent market as well as provide liquidity for shares not listed on NSE.
"We will open up with equities and bonds many of which are currently being traded on the black or grey market in the first phase," he said.
He explained that investors could trade shares of unlisted multinational companies from the market and those acquired during private placements.
The NASD boss added that the company in the second phase would have capacity to trade on commercial papers while other complex instruments like derivatives and options would be traded in the third phase.
"NASD as an OTC market will not have a trading floor but trading will be done through the internet and a hosted platform leased from the NSE," he said.
According to him, NASD Plc had developed an integrated market system comprising Central Securities Clearing System, six settlement banks and some registrars to ensure smooth operations.He disclosed that there would not be circuit breaker on pricing of equities, noting that equities would be priced based on performance and available information in the market.
Ajomale said NASD would play a crucial role in sustaining the real growth of the economy by offering more liquidity in investment instrument to the nation's capital market.
He said that the company would be guided by integrity, performance and transparency in all its activities, adding that erring brokers would be sanctioned to ensure discipline.
"NASD will play a crucial role in the ability of Nigeria to sustain a real growth rate of over seven per cent per annum," Ajomale said.