FInally, it’s here…the National Association of of Securities Dealers (NASD) have announced that the Over the Counter Market (OTC) for trading of shares of unlisted companies is set to begin by the second half of 2013. They have confirmed the following banks as settlement banks;
The OTC market for trading securities is an alternative market to the Nigerian Stock Exchange (NSE) and allows companies who do not want to be listed on the Nigerian Stock Exchange to still access capital market. What this means is that startups and companies seeking capital in the form of Venture Capital or Private Placement can now have a structured market where they can sell their securities. In addition, shareholders (owners of securities) can also buy or sell private placement rather than wait till the companies get listed on the NSE.
This is a good development and I hope to see guidelines for this in the coming months. Watch this space.