NASD Vs SEC: Trading in Unregistered Securities

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NASD Vs SEC: Trading in Unregistered Securities

The NASD Plc said it does not see the reason why the Securities and Exchange Commission, SEC cannot allow investors to trade in the securities of public companies that are not registered with the Commission.

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The Chairman, NASD Plc, Mr. Olutola Mobolurin, told Vanguard MoneyDigest during the 30th Anniversary of Capital Bancorp Plc in Lagos that NASD is currently engaging the Commission on the need to allow shareholders trade their securities with any public company not yet registered with them.

He said: “NASD is a vehicle that can help Nigeria develop companies that are not ripe for being in the stock market. But we have not done things right in this country because the economy itself has not grown in a manner that will drive the growth of NASD. We are discussing with SEC to allow NASD to trade the securities of every public company, whether that company’s securities is registered with SEC or not.”

“The purpose of a secondary market is to allow any body that has invested in a company that is public to be able to sell those shares in a transparent manner and in a market that is regulated to ensure that everybody trade within certain rules that are fair to both seller and buyer.”

“At the end of the day we hope that both institutions will be able to come to amicable resolution to ensure that the interest of the investor is protected not just a religious adherence to a law that really goes against the spirit of the law. The spirit of the law is to protect the investor.”

The SEC has said no to what the NASD is seeking. The position of SEC is that any public company that wishes to trade its securities in the NASD platform must register with it. They must register the securities in accordance with the law of the Securities Act.


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