The NASD OTC admits securities to trade on the platform once they meet some basic criteria. Most important requirements are that the security is registered as a public security by the Securities and Exchange Commission and secondly, that the security is not listed on any other Stock exchange in Nigeria. Shares traded on NASD OTC are admitted in two ways;
1) Investor Admission
2) Company Admission
1. Investor Admission: This option allows individual investors access to trade their holdings through a broker on the NASD OTC market. Investors who have certificates of public companies and require liquidity can introduce the security for trading through a registered broker. We refer to such security as Admitted Security
An Admitted Security is any security introduced by a Trading Institution and admitted to trade on the Market.
Where a Trading Institution wishes to trade a security that is not currently being traded on the Market, it may apply to admit such security to trade. Please note that where a security is already being traded on the Market, Trading Institutions who wish to trade on that security need not apply again to admit the security to trade.
Application form to apply for new security to trade.
2. Company Admission: Company Admission to the NASD OTC Securities Exchange implies that a company has agreed to adhere to the rules and listing requirements of the NASD OTC. Part of these rules require regular reporting and equipping the public at all times with price sensitive financial information that will enable them take a fair view of the company’s financial position. . When a company decides to change its status from the Admission to Trade status to Admitted company, it is indicating to investors that it is prepared for that added layer of disclosure, transparency and regulation.
Admitted companies are classified into the Blue or Pink categories depending on their level of compliance with our reporting requirements. The Blue tier implies a high performing company with a history of good corporate governance and financial reporting standards. The Pink tier companies with great growth potential but do not fully meet our full listing requirements.
Issuers/ Companies must may apply through a Participating Institution to be admitted on the OTC market by completing Application form 2.