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Chinwendu Obienyi
The Nigerian Stock Exchange (NSE) says it will will convene a mandatory Court Ordered Meeting (COM) of its members to pass requisite resolutions for the demutualisation of the Exchange.
Similarly, the Exchange will hold an Extraordinary General Meeting (EGM) to pass the resolutions for the appointment of inaugural board members of Nigerian Exchange Group Plc, post-demutualisation of the NSE. Both meetings (COM and EGM) are expected to hold next month in Lagos.
Commenting on the Exchange’s quest to demutualise, its Chief Executive Officer, Oscar Onyema, noted that the effort of the NSE at seeing the demutualisation nearing completion is fuelled by its commitment to develop a more agile exchange that is able to support the economic growth of Nigeria.
“We are confident that post-demutualisation, the NSE will be better equipped to diversify our operations and evolve into a more competitive, robust and liberalised stock market.”
Reacting to the development, Managing Director, APT Securities, Mallam Kurfi Garba, while speaking during the Capital Market Correspondents Association of Nigeria (CAMCAN) first quarter forum in Lagos yesterday, said that demutualisation will reactivate idle capital in the market, adding that it will change the perspective and drive more growth for the economy.
He stated: “It is a good thing and all of us are going to be happy at the end of the day because it is going to unlock more capital for the market. For instance, if I place shares as collateral, I can trade and make money. We are pleased this is coming after so much delay, this will change the economy’s perspective as well”.
Members of the NSE had approved for the exchange to embark on the demutualisation scheme at an Extraordinary General Meeting (EGM) in March 2017. This was followed by the signing of the demutualisation of the NSE Bill into law in July 2018.
