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SMEs Advised to List on NASD Platform

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IMAGE: Mr. Bola Ajomale, MD/CEO, NASD, »



Story:  Obinna Chima

Small and medium scale enterprises (SMEs) in the country have been advised to take advantage of the platform provided by the National Association of Security Dealers Plc (NASD) to access funds for their operations.

The Managing Director/Chief Executive Officer, NASD, Mr. Bola Ajomale made the call while speaking on the “The Fidelity SME Forum,” a weekly radio programme sponsored by Fidelity Bank Plc.

Speaking on the “Sources of Capital for SMEs, Options and Requirements,” Ajomale explained that NASD does not provide fund but a market for those who have funds and those who are seeking funds to meet.

He said: “If a company wants to raise money, they would approach us through an adviser and they showcase themselves as well as their funds. They can also promise their shareholders or those that invest in them that they can sell down through the market.

“A private equity firm or venture capital firms actually have their own funds from managed funds that they are seeking to invest. So we are not seeking to invest, rather we are creating a market where both investors and shareholders existing and those wanting to come in can meet each other and trade.”

He explained that NASD is a collection of capital market operators under the regulation of the Securities and Exchange Commission (SEC) mandated to trade on non-listed securities.

He explained that the NASD was formed because there are a lot of securities that are not listed on the Nigerian Stock Exchange (NSE), adding that NASD would provide succor and liquidity for SMEs.

“Our platform provides an avenue through which you can at least show that you have these shares to sell and also allows people to see what is available to buy because as some people want liquidity, other people are looking for investments to get into. We match both the investor and one who is getting out on investment together,” Ajomale added.

On how a company can qualify to take advantage of the platform, Ajomale stated that there are criteria for every single entrant and stage, stressing that there are large and small companies already trading on the platform.

Furthermore, he explained that there is the blue category and the pink category.

“They must have advisers. We would encourage them even if they just had seven shareholders and once you have shareholders, you can register as a Plc. We would encourage them to be a public limited company because that way, they can access a wider range of funds. We do not have a number of size of the capital per say but we’ve started talking to SME companies,” he declared.

Fidelity SME Forum is a deliberate attempt by the bank to resuscitate the Small and Medium – scale Enterprises (SMEs) and create a new generation of entrepreneurs.

Article Credit: ThisDay Newspaper

Updated 5 Years ago

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Tags:     Small and medium scale enterprises (SMEs)     National Association of Security Dealers Plc (NASD)     Managing Director/Chief Executive Officer     NASD     Mr. Bola Ajomale     Nigerian Stock Exchange (NSE)