By Modupe Gbadeyanka
A bill to make it possible for the conversion and re-registration of the Nigerian Stock Exchange (NSE) from a company limited by guarantee to a public company limited by shares and for other related matters has scaled through second reading in the Senate.
Acting Chairman, Senate Committee on Capital Market, Mr Foster Ogola, who presented the bill for consideration last Tuesday, described the bill as an integral element of the 10-year Capital Markets Master Plan.
He explained that the Demutualisation Bill will facilitate the development of the Nigeria’s capital market.
He added that if passed, the bill would result in an increased value of the exchange, enabling it to compete favourably in the global market, open the doors for significant investment into Nigeria and ultimately enhance the nation’s capital market.
“The approval of the demutualization bill will generate substantial motivation for the development of an agile exchange thereby consolidating its innovativeness and strengthening its leadership both at local and international levels whilst also adding value to its stakeholders.
“As a demutualized entity that is profit-seeking, the NSE will be in a better stead to capitalize on new income opportunities, free from any limitations arising from conflicting member interests and existing laws and more importantly be able to better support the economic growth of Nigeria,” the lawmaker said.
When the bill was put up for voice vote by the Senate President, Mr Bukola Saraki, the lawmakers threw their weight behind it.
After the vote, the bill was sent to Senate Committee on Capital Markets for further legislative action and return to the Senate after four weeks.
Last month, this same bill passed the second reading at the House of Representatives.
The bill, titled ‘Demutualization of the Nigerian Stock Exchange, Bill, 2017,’ is sponsored by Mr Yusuf Ayo Tajudeen, a member of the lower legislative chamber of the National Assembly.
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