The NASD Plc has facilitated trading of unlisted securities of public companies worth N648 million in the over-the-counter (OTC) market in the first year of its operations.

Prior to 2013, holders of securities of public companies not listed on the Nigerian Stock Exchange (NSE) found it difficult to trade those securities. However, the NASD Plc, a licensed platform for unlisted securities, became operational July 1, 2013.

One year after the NASD Plc OTC market came alive, investors in unlisted securities have exchanged securities valued about N648 million through the platform.

A total of 16 companies had their securities floated on the NASD Plc in the first year. But the number will increase this week as four more companies are to join the platform. The new companies are: Dufil Prima Foods Plc, Energy Company Nigeria Plc, Kajola Integrated Investment Plc, and TrustBond Mortgage Bank Plc (formerly Intercontinental Homes Plc).

The companies that have been on the platform include: ARM Life Plc; Afriland Properties Plc; BGL Plc; Consolidated Breweries Plc; Central Securities Clearing System Plc; Friesland Campina WAPCO Nigeria Plc; Food Concepts Plc; and Geo-Fliuds Plc.

Others are Golden Capital Plc; Industrial & General Insurance Plc; Jaiz International Plc; Niger Delta Exploration & Production; Partnership Investment Company Plc; Resourcery Plc; Riggs Ventures West Africa Plc; and Swap Technology and Telecomms Plc.

An analysis of the N648 million traded showed that 10 out of the 70 stockbroking firms registered to trade in 2013 accounted for the 96 per cent of the transactions.

Stanbic IBTC Stockbrokers Limited led with N156 million or 23 per cent of the transactions. WAST Financial Services Limited followed with N109 million or 16 per cent. Cordros Capital Limited accounted for N88 million or 13 per cent.

Capital Bancorp Plc traded N80 million or 12 per cent, while Valmon Securities Limited accounted for N54 million, representing eight per cent.

Chapel Hill Denham Securities Limited recorded N43 million or six per cent, while Trusthouse Investment Limited and Capital Asset Limited accounted for N34 million and N32 million (five per cent) respectively.

BGL Securities Limited traded N28 million, while Arthur Steven Asset Management Limited facilitated N25 million worth of securities.

When NASD Plc commenced operations, its managing director, Mr. Bola Ajomale, had said the platform 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. NASD Plc 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 had said.

According to him, NASD Plc would be guided by integrity, performance and transparency in all its activities, adding that erring brokers would be sanctioned to ensure discipline.

Interesting to say the least.