Friday, December 15, 2017 /6:00 PM /
The NASD OTC Securities Exchange brings a new layer of investment opportunity to investors in unlisted public securities who hitherto now, were unable to liquidate their shares. It also brings a new level of confidence to issuers who need quick access to the Capital Market to raise required capital.
Some factors play a critical role in investment decision making for Investors and Issuers. Factors such as access to information on historical and current financial performance, compliance to global best corporate governance standards and managerial capacity to create long-term value. This is due to the generally accepted principle that companies with a good track of corporate governance and financial performance generate better returns on investment.
As more information is made available; Investors can make better investment decisions, price discovery is more efficient and the company finds it easier to attract capital.
NASD OTC Securities Exchange recently commenced a classification of admitted securities into “Blue Securities” and “Pink Securities” to provide the capital market community with information on securities that satisfy general market expectations. We believe that this service will reveal more of the intrinsic value in such companies, improve levels of investor confidence and drive more efficiency into price discovery processes.
NASD applies a fair, unbiased, rigorous approach; taking care to remain objective and factual using the most recent publicly available and reliable information. We communicate with each company to give them the opportunity to comment and provide additional data if necessary. We also provide full transparency on our methodology, to ensure what we are doing, and how we are doing it is accessible and understandable to anyone.
In initiating our categorization, NASD has referenced information that is no later than 12 calendar months from the date of initiation (in this instance November 2016). This is taking from the principle that interim financial information older than 9 months is considered stale for public companies.
Information reviewed include Publicly Available Company Reports and Audited company filings, Date of Annual General meeting, Interim reports. Information is systematically assessed under four broad groupings:
approach seeks to highlight issuer’s levels of engagement with the investing
public and the level of compliance of such a company with the ISA. Invariably,
companies with higher levels of financial reporting and corporate governance
achieve a higher score than those that have weaker compliance with regulatory
and capital market requirements.
To produce the rankings, NASD estimates a series of individual numerical scores at the each criteria level. These criteria scores are calculated and normalized across Metrics. A security’s overall score is then determined by calculating the weighted sum of its scores across all Criteria.
Blue Securities: - These are shares of companies with a history of sound financial performance. These companies display a high level of corporate governance by timely disclosure of their financial statements, regular communication with shareholders and meet the minimum requirements of the Securities and Exchange Commission (SEC).
Pink Securities: - These are shares of companies that do not comply with the minimum disclosure and reporting requirements of SEC and NASD. Companies in this category may not have current information available to the public.
Red Securities: - These are shares of companies that are clearly in default and do not meet up to expectations of the capital market and Regulators. Non-compliant companies will be ranked by end of Q1 2018.
NASD Security Categorisation Rankings are generally updated weekly, with the updated ratings published on Monday mornings. From time to time, NASD may update the Security Categorisation Ranking in response to changing levels of compliance.
Date: Tuesday, 19 December
Venue: Muson Centre, Onikan Lagos.
Time: 9:00 am
Notice is hereby given that the 8th Annual General Meeting of TrustBond Mortgage Bank Plc. for the financial year ended 31 December, 2016 has been scheduled to hold as follows:
20 December 2017
Venue: Peninsula Hotel, Block 94 Plot 16, Providence Street, Lekki Scheme 1, Lagos
Time: 12:00 pm
The Week in Review
Top Performing Participating Institutions
Our community consists of 233 Authorised Traders, representing 129 Participating Institutions..
Market in Numbers (YTD)
2. NASD OTC Introduces its Enterprise Portal to Market Stakeholders
3. Introducing NASD OTC "BLUE" Securities
4. NASD USI Down by -0.4% WoW
5. NASD USI Down by -1.60% WoW
6. NASD USI Up by 0.10% WoW
7. New Policy On Stock Promotion, Establishing Best Practices To Enhance Market Transparency Released
9. Investments and Securities Tribunal Visits NASD
10. NASD USI Up by 1.06% WoW
11. CR Services Plc Set to Float Rights Issue
12. NASD USI Down by -0.55% WoW
13. NASD USI Up by +0.98% WoW
14. Stakeholders call for deepening of Nigeria’s Debt Capital Market, to achieve growth
15. NASD USI Up by +0.5% WoW
16. NASD USI Down by -1.0% WoW
17. Lighthouse Financial Services Plc Admitted to Trade on NASD OTC
18. NASD USI Down by -2.4% WoW
19. NASD USI Down by -0.3% WoW
20. NASD USI down by -2.0% WoW
21. NASD USI Up by +1.4% WoW
22. Niger Delta in Investors' Good Books
23. NASD USI Down by -1% WoW
24. FMDQ lists N5bl first tranche of Pioneer Nigeria Infrastructure Debt Fund
25. Give Them Cash, Will They Thrive?
26. NASD USI Down by -1.5% WoW
27. FMDQ holds 5th AGM, Records $5bl OTC FX Futures worth of Contracts in 2016
28. NASD Analyst Call: Crown Natures Plc engages market on planned N1.6bl capital raising
29. Invitation of Expression of Interest from NASD OTC Securities Exchange
30. New Security Admitted to NASD OTC
31. Can we be Optimistic on our Economic Expectation?
32. Perspectives of The Capital Market on Nigeria's Growth
33. NASD USI Up by +0.58% WoW
34. NASD USI Down by -1.25% WoW