NASD Urges Compliance with SEC Rules: Key Guidelines for Traders

The NASD OTC Exchange is urging public limited companies to follow the Securities and Exchange Commission’s rule, which requires securities of unlisted public companies to be traded on SEC-registered Over-the-Counter exchanges. This rule is in place to ensure transparency and protect investors.
According to the SEC, the regulation specifies that securities of unlisted public companies can only be bought, sold, or transferred through systems approved by the Commission. Violators, including companies, directors, registrars, brokers, or dealers, could face penalties ranging from N100,000 to N5,000 per day of default.
Non-compliance with this rule undermines the SEC’s ability to monitor these companies. By enforcing the rule, the securities of unlisted public companies will be more accessible to investors on a trusted platform, reducing fraudulent transactions and boosting investor confidence.
Adhering to the SEC rule not only ensures transparency but also provides opportunities for price discovery and promotes portfolio diversification across different economic sectors. The NASD OTC Exchange is diversifying its operations to enhance competitiveness and attract more customers, ultimately delivering shareholder value.