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SEC grants NASD approval to launch Digital Securities Platform

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The Nigerian Securities and Exchange Commission (SEC) has granted approval to NASD PLC to launch its Digital Securities Platform (N-DSP), powered by Blockstation, under the Regulatory Incubation (RI) Programme.

This milestone, which follows the lift of ban on trading on digital assets by the Central Bank of Nigeria (CBN), signifies a major stride towards fostering a new age of innovation that enhances transparency and deepens trust and inclusion in the Nigerian capital markets.

NASD in collaboration with Blockstation Incorporation, had engaged with SEC to shape a regulatory framework for crypto and digital assets. The development of regulations and the subsequent approval for the launch of the NASD Digital Securities Platform (N-DSP) mark a significant outcome of this collaborative initiative.

“Our objective is to empower millions of young investors with access to promising digital assets, ensuring they can make purchases with confidence in a completely compliant and secure investment environment. Nigeria currently ranks second globally, for blockchain wallets, and our Exchange is poised to supporting high-quality assets, thriving on the blockchain.” explained Eguarekhide Longe, Managing Director, NASD PLC.

NASD is providing issuers with a gateway to raise capital from the public, using digital assets, marking a groundbreaking initiative.

This endeavor is set to directly influence traditional debt and equity markets, along with traditionally illiquid assets. The opportunity for digital sovereign bonds can provide the necessary capital for infrastructure while helping resolve FX challenges in the country. The diaspora, with $20 billion in annual remittances, can have a promising window to invest their money back home.

The tokenization of entertainment assets, such as publishing rights, can further empower and monetize the world’s largest film content creators, For instance, as Nollywood, currently undercapitalized, new markets like tokenized real estate and mortgage-backed securities (MBS), can leverage tokenization to address such challenges, including the 28 million housing deficit, thereby creating a substantial market opportunity.

“In a nation marked by dynamic economic forces, the confluence of digital assets and traditional financial institutions signals a transformative era for Nigeria’s economic landscape. The integration of cutting-edge technology to address the needs of, and captivate the substantially large youthful population, is set to unlock previously untapped markets. We are confident that this platform will play a pivotal role in propelling Nigeria into a new era of economic growth and development, says Jai Waterman, CEO, Blockstation.

Blockstation, as a technology partner, has provided a robust enterprise blockchain-driven platform, originating and popularizing the importance of regulated tokenized IPOs, generally called Security Token Offerings (STO’s). The N-DSP is set to transform the way of issuing, trading, and settlement of digital securities, democratizing, access to capital markets and leveraging blockchain technology to enhance accessibility while minimizing costs.

The operations of the N-DSP during the RI Program will be regulated by SEC and participating institutions, such as custodians, brokers and issuing houses, will play essential roles during this phase. The focus has now shifted to market sensitization and public education before going Live. It will be facilitated by a consortium of partners, namely NASD PLC, Blockstation, Sophus Consulting and TK Tech Africa. This sandbox will involve a limited number of qualified issuers, marking a strategic approach for enhanced controlled and effective implementation.

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  1. Trycia Thiel

    January 14, 2024 at 10:00 pm

    I was recommended this website by my cousin I am not sure whether this post is written by him as nobody else know such detailed about my difficulty You are wonderful Thanks

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capital market

Stock market recovery short-lived as investors lose N199bn

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Investors in the Nigerian equities market lost N199 billion at the close of trading on Tuesday.

Before Monday’s N70 billion gain, investors had endured over two weeks of consecutive bearish trading sessions.

Yesterday’s loss followed the dip in the value of stocks like Honey Well Flour, FBNH, Oando and FTN Cocoa Processors, amongst others on the trading floor today.

After five hours of trading at the capital market, the equity capitalisation decreased to N56.1 trillion from N56.3 trillion posted by the bourse on Monday.

Similarly, the All-Share Index (ASI) decreased to 99,311.54 from 99,665.05 achieved by the bourse the previous day.

The market breadth was negative as 16 stocks advanced, 24 declined, while 75 others remained unchanged in 7,324 deals.

Sunu Assurances Nigeria led other gainers with 10 percent growth in share price to close at N1.10 from its previous N1.00 per share.

Japaul Gold and Ventures, CAP, and Omatek Ventures also raised their share prices by 9.58 percent, 9.38 percent, and 9.21 percent respectively.

On the flip side, Honeywell Flour Mills led other price decliners as it shed 9.89 percent off its share price to close at N3.19 from its previous N3.54 per share.

First Bank of Nigeria Holdings (FBNH), Oando, and FTN Cocoa Processors equally shed their share prices by 9.88 percent, 9.82 percent, and 9.40 percent respectively.

On the volume index, Transcorp traded 125.700 million shares valued at N1.8 billion in 467 deals followed by United Bank for Africa (UBA) which traded 55.486 million shares worth N1.27 billion in 685 deals.

Access Holdings traded 51.473 million shares valued at N883.2 million in 958 deals.

On the value index, Transcorp also recorded the highest value for the day trading stocks worth N1.89 billion followed by UBA which traded equities worth N1.27 billion in 685 deals.

Access Corp traded stocks worth N833 million in 958 deals.

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MRS Oil Nigeria seeks shareholders’ approval to delist from NGX

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The Board of MRS Oil Nigeria Plc will, at the company’s Extraordinary General Meeting (EGM), request shareholders’ endorsement to voluntarily delist from the Nigerian Exchange Limited (NGX).

The decision to exit from the NGX was contained in the notice of an Extraordinary General Meeting to be held in Lagos on May 21, 2024.

The company will also seek shareholders’ approval for its Memorandum and Articles of Association (MemArts) to be modified to allow for a share buyback and share capital reduction.

This will be carried out in accordance with applicable laws and regulations at the discretion of the board.

It will also seek an understanding that following the conclusion of voluntary delisting and while the company remains public, the board is empowered to facilitate the admission of its shares on the NASD OTC Securities Exchange.

This action ensures compliance with the Securities and Exchange Commission (SEC)’s rules on trading in unlisted securities.

According to the statement signed by O.M Jafojo, Company Secretary, as part of special business, the company will request the shareholders to consider, and if thought fit, pass, with or without modification, the following sub-joined resolutions as special resolutions:

“That the voluntary delisting of all the Company’s issued shares from the daily official list of Nigerian Exchange Limited (the ‘Voluntary Delisting’) be and is hereby approved, on such terms and conditions (including but not limited to timing of implementation, arrangements for dissenting shareholders (if any) and the fulfilment of specific conditions precedent to effectiveness (if any)), that the Board of Directors of the Company (the ‘Board’) deems appropriate in connection with the Voluntary Delisting; and subject to obtaining all requisite regulatory approvals.

“That the Memorandum and Articles of Association (‘MemArts’) of the Company be and are hereby amended to authorize the Company to undertake a share buyback and share capital reduction.

“That the Company be and is hereby authorised to undertake a share buyback and share capital reduction in connection with any of its issued shares which may be purchased from dissenting shareholders where necessary as a consequence of the Voluntary Delisting; on such terms and conditions, in such volumes and at such times as the Board deems fit; subject to, and in accordance with, applicable laws and regulations.

“That the MemArts of the Company be amended upon completion of the share buyback and share capital reduction, to reflect the Company’s updated share capital.

“That upon conclusion of the Voluntary Delisting, and whilst the Company remains a public limited liability company, the Board be and is hereby authorised to take all such action as may be required, to admit the Company’s shares on the NASD OTC Securities Exchange in order to ensure that dealings in the Company’s shares are implemented in accordance with the Securities and Exchange Commission’s Rules on Trading in Unlisted Securities.”

The company will also seek approval to authorise the board to take all such lawful actions and steps (including but not limited to entering into/executing such agreements and documents, appointing professional advisers and other parties, complying with directives of any regulatory authority) deemed necessary to give full effect to the above-referenced resolutions.

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Bearish trend halted as investors gain N70.87bn

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Investors in the Nigerian equities heaved a sigh of relief as the losing streak on the bourse was halted on Monday, April 22, 2024 as investors recorded a profit of N70bn at the end of trading.

This followed the boom in the share value of stocks like Japaul Gold, GTCO, FTN Cocoa, Universal Insurance Company and RT Briscoe amongst others on the trading floor today.

After five hours of trading at the capital market, the equity capitalization increased to N56.367 trillion from N56.296 trillion posted by the bourse on Friday, last week.

Similarly, the All-Share Index (ASI) grew to 99,665.05 from 99,539.75 achieved by the bourse the previous day.

The market breadth was negative 16 stocks advanced, 18 stocks declined, while 85 stocks remained unchanged in 8, 298 deals.

Japaul Gold and Ventures Plc led other gainers with 9.58 percent growth to close at N1.83 from its previous price of N1.67, Guaranty Trust Holding Company (GTCO), FTN Cocoa Processors, and Universal Insurance Plc are amongst other gainers that also grew their share prices by 9.55 percent, 8.76 percent, and 8.57 percent respectively.

On the flip side, The Initiate Plc led other price decliners as it shed 10% off its share price to close at N1.80 from its previous close of N2.00. Prestige Assurance, Omatek Ventures, and VitaFoam Nigeria Plc are amongst other losers that also shed their share prices by 9.84 percent, 9.52 percent, and 9.26 percent respectively.

On the volume index, Guaranty Trust Holding Company (GTCO) Plc traded 50.158 million units of its shares in 630 deals, valued at N1.1774 billion followed by Access Holdings Plc which traded 48.067 million units of its shares in 951 deals, valued at N815.925 million and United Bank for Africa (UBA) Plc which traded 41.746 million units of its shares in 776 deals, valued at N956.455 million.

On the value index, GTCO recorded the highest value for the day trading stocks worth N1.773bn in 630 deals followed by UBA which traded equities worth N956bn in 776 deals and ACCESSCORP which traded equities worth N815m in 951 deals.

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