1. LBS Business Breakfast- Opportunities on NASD OTC
Lagos,
6 September, 2018

2. Contents
About NASD
Entry / Trading
Opportunities
FAQ

3. About Us

4. History and Focus From an Association of securities dealers
To a SEC licensed OTC market in December 2012
A PLC owned by market operators
A self regulatory organisation
Focussed on building transparency and liquidity
Start point is equities
Vision
To be the hub of first call for capital formation in West Africa

5. eco-system Banks Clearing Platforms Participants > 77 Dealing firms
> 23 Issuing Houses
> 119 Authorised Traders

6. Summary of value add Stakeholder Value Added Issuers
Create public visibility
Investors
Open market pricing
Market
Transparency and liquidity
Private Equity
An efficient exit window
Overall Economy
Growth

7. Examples of Value Add Investor confidence: For brokers For issuers
Provides transparency in trading of unlisted securities
Protects investors from unregistered brokers
Provides information on liquidity around unlisted securities
Improved investor / Shareholder relations
For brokers
Reduced counter party risk
A centralized platform for price discovery and specialized market data
Access to broad range of asset classes 
For issuers
Ability to raise hybrid funds
Increased corporate visibility which brings economies and savings. 

8. ENTRY and trading

9. Admission of Instruments
Admitting a Company
Issuer will comply with all rules and regulations of the NASD
Price quotes are made on a daily basis
Company will be placed in one of two bands (Blue & Pink)
Full register is dematerialised and lodged in CSCS
Admitting to trade
Initiated by the Investor
Broker fills an application
Issuer consent is not required
Partial dematerialisation of register

10. Admitting A Company Submit Board resolution to list shares on NASD
Dematerialise securities and create register in CSCS
Admitting new securities requirements
Undertake to be bound by the rules of NASD
Publicly announce listing on NASD

11. ADMITTING A COMPANY Procedure Timing is approximately one month
Appoint Issuing House to assist with the listing process (see the List of the accredited Issuing houses on
Submit completed NASD application form with required documentation
After due diligence, NASD gives approval in principle to list
Company signs undertaking to abide by rules of market
Share register is dematerialised and sent to CSCS
Timing is approximately one month

12. Admitting a security If security meets requirements,
NASD will request security code and ISIN number from CSCS
CSCS will open account with codes within 3 working days.
NASD informs all stakeholders (Registrars, PIs, Issuer, Public) of admission .
NASD notifies the participating institution of the Security code and ISIN number for their necessary action.
Timing is approximately one week

13. NASD NSE difference NASD NSE None. Trade is online 13 across Nigeria
Physical trading floor
None. Trade is online
13 across Nigeria
Participant codes
Starts with 4….
Starts with a letter
CHN
Starts with D…..
Starts with C….
Regulator of Issuers
SEC not NASD
SEC and NSE
Stocks introduced by
Individual shareholders
AGM approves
Price limits
None
Daily cap
Symbol Code
Starts with “SD”
No unique identifier
Settlement banks
Six (6)
Many
Trading hours -
9:30 a.m. to 3:30 p.m.
9:30 a.m. to 2:30 p.m.

14. OTC MARKET OPPORTUNITIES

15. Currently trading on NASD OTC
SECURITY
Share Capital in Volume
Market Cap
ARM LIFE PLC
5,785,673,000
     
15,910,600,750.00
AFRILAND PROPERTIES PLC
250,000,000
           
137,500,000.00
BGL PLC
12,000,000,000
46,800,000,000.00
CONSOLIDATED BREWERIES PLC
496,071,617
45,142,517,147.00
CENTRAL SECURITIES CLEARING SYSTEM PLC
5,000,000,000
18,000,000,000.00
FRIESLAND CAMPINA WAMCO NIGERIA PLC
976,335,936   
419,824,452,480.00
FOOD CONCEPTS PLC
5,650,000,000
    
  11,243,500,000.00
GEO-FLUIDS PLC
4,257,668,000
 6,429,078,680.00
GOLDEN CAPITAL PLC
1,170,324,536
       
1,170,324,536.00
INDUSTRIAL & GENERAL INSURANCE PLC
14,231,238,000
7,115,619,000.00
JAIZ INTERNATIONAL PLC
4,014,429,720
4,616,594,178.00
NIGER DELTA EXPLORATION & PRODUCTION
145,780,311
45,191,896,410.00
PARTNERSHIP INVESTMENT COMPANY PLC
2,875,595,000
5,751,190,000.00
RESOURCERY PLC
2,576,686,039
4,380,366,266.30
RIGGS VENTURES WEST AFRICA PLC
880,394,000
836,374,300.00
SWAP TECHNOLOGIES AND TELECOMMS PLC 
2,705,378,000
8,116,134,000.00
TRUSTBOND MORTGAGE BANK PLC
10,945,334,000
13,134,400,800.00
TOTAL
73,960,908,159
653,800,548,547.30
06/09/2018

16. FUTURE OTC OPPORTUNITIES
Equity-linked securities
Cross border investments
GDRs, NDRs, Multilayered corporate debt instruments
Full range of Derivatives
Venture capital and Private Equity sell downs

17. SPECIFIC INDUSTRY TARGETS
Agriculture: Rice milling, Dairy products, PE activity
Sector to be launched by December 2014
Power: GenCos, DisCos pre-listing
Technology: Estimated requirement of ₦1.3trn …

19. Summary of FAQs

20. NASD/PI FAQ Q: What is NASD?
A: NASD is an acronym for National Association of Securities Dealers. It is focused on providing a technologically driven trading platform where securities not listed on the Nigerian Stock Exchange ["NSE"] are traded.
Q: Who regulates NASD?
A: NASD is primarily regulated by the Securities & Exchange Commission ["SEC"] and it is also a self-regulatory organization just like the NSE.
Q: What is the difference between NASD and the NSE?
A: The NSE provides the platform for trading on quoted securities while NASD only deals with un-quoted securities

21. NASD/PI FAQ….Contd
Q: What is the difference between quoted and un-quoted securities?
A: Quoted securities are securities that are listed/traded on an organized exchange like the NSE while un-quoted securities are those traded in an OTC market.
Q: Can all un-quoted securities that can be traded on the NASD OTC platform?
A: No. Before any un-quoted security can be traded, the Company must have met the following eligibility criteria:
The security must be registered with SEC
The security must be freely transferable - no legal or regulatory restriction preventing open trades.
The Company must have been in operation for a year.
It must be a public company or be held by more than 50 beneficial owners.

22. NASD/PI FAQ…Contd
Q: How long will it take to verify the certificates of companies whose securities are un-quoted?
A: Certificate verification will generally take about 48 hours from the day the Broker forwards it to the Registrars. However, in some cases where there are issues on the sellers signature mandate, it may take a little longer
Q: How do I know if a security is tradable
A: Please visit our website for the list of Admitted securities
Q: What is most efficient way to get support from NASD PLC
A: For quick help you can logon to our website and have a live chat with us for instant response. You can also reach us on

23. Contact us Office : 9th Floor, UBA House, 57, Marina, Lagos E-mail:
Website:
Live Chat enabled
Tel. :