NSE Eyes 2020 for Demutualization, Writes SEC for No Objection
By Adedapo Adesanya
The Nigerian Stock Exchange (NSE) has reiterated its commitment to becoming a demutualized exchange very soon. This disclosure was made by the National Council President of the Nigerian Stock Exchange, Otunba Abimbola Ogunbanjo, in an exclusive chat with Business Post on Monday, September 30, 2019.
Mr Ogunbanjo expressed his desire to ensure that the exchange was listed on its trading platform, allowing many Nigerians to be part of the organisation, which is said would be a good development.
In his chat with us, he said with the progress being made, this long-awaited demutualisation should happen in 2020, noting that the process was in an advanced stage.
He said, “By this time next year, we will be a demutualized exchange and we will be making good money for the people of Nigeria.”
He, however, noted that this was subject to the approval of members at a meeting, hinting that this could hold anytime soon.
“Hopefully, in the next coming weeks we will take another meeting to get our members to approve the new entity called Nigerian Stock Exchange Limited,” he said.
He expressed hopes that the exchange could make it pass the hurdle that has been holding the exchange from listing its shares.
Also, on Monday, at the 58th Annual General Meeting (AGM) of NSE in Lagos, CEO of the exchange, Mr Oscar Onyema, noted that the exchange had made significant progress as regard its demutualization.
“We have gone ahead, completed and submitted the documentation to the Securities and Exchange Commission (SEC) for the no-objection.
“When we get approval for the no-objection, we will have a meeting with members to get their final vote and when we get their final vote, we then resubmit a formal application to the SEC to complete the demutualization process.
He also said the exchange will be registered appropriately with the Corporate Affairs Commission (CAC).
Business Post reports that in late 2018, President Muhammadu Buhari signed into law the bill to demutualise the stock exchange.