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Stockbrokers pledge support for unlisted securities platform

By BusinessNews Staff on August 12, 2014

The Chartered Institute of Stockbrokers (CIS) has pledged to deepen the over-the-counter (OTC) market for securities unlisted companies in Nigeria saying that doing so will empower more Nigerians in particular and the economy in general.

The President of CIS, Mr. Albert Okumagba made the pledge during a visit to NASD Plc, the operator of the OTC market for unlisted securities recently Lagos.

Okumagba, who was elected CIS president last April, said his visit was partly due to the importance of the OTC market in expanding the frontiers of the capital market and changing the investment landscape in Nigeria.

According to him, CIS will provide every assistance under its purview to be a relevant support to the growth and development of the alternative securities market.

Okumagba disclosed that already CIS has re-organised its education committee and expanded its curriculum to accommodate all securities trading styles, explaining that CIS programmes now will include a focus on training professionals to operate on the OTC market.

“Diploma courses will be made available in investment industry book keeping as well as pension funds, mutual funds and banking. CIS Diploma holders will have a head start in qualifying as professional stockbrokers,” he said.

He said the OTC market is critical because it provides the same level of transparency as a full stock exchange. He encouraged brokers to inform their clients that companies that have delisted from the Nigerian Stock Exchange (NSE) still retain their value as they can still be traded on the OTC market. He reiterated that all public companies should trade on an open platform – no company should stand alone or control shareholder liquidity

Welcoming the CIS president, the Vice Chairman of NASD Plc, Chief Chike Nwanze assured the CIS of the company’s willingness to fully cooperate with the institute in raising the level of professionalism in the market.

Nwanze said he was convinced that the dynamism of Okumagba would assist the growth of the market and encouraged CIS to work closely with the Securities and Exchange Commission (SEC) to discourage black market and dark pool trades in unlisted securities.

Speaking in the same vein, the Chief Executive Officer of NASD Plc, Mar. Bola Ajomale identified three major areas that the OTC market requires the CIS curriculum to concentrate on including: pricing and valuation, transaction record keeping and Integrity and ethics.

[This Day]

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