Stakeholders in the capital market have endorsed a Bill by the National Assembly to reform the Nigerian Stock Exchange, (NSE) by de-mutualising it from a company limited by guarantee to a company limited by shares.
Sponsored by Senator Foster Ogola, Acting Chairman, Senate Committee on Capital Market, the Bill aims at enhancing the conversion and re-registration of the NSE into a public company limited by shares considered to be essential to develop and strengthen the capital market and enhance the formation of capital for the expansion of the Nigerian economy.
The Bill also seeks to promote efficiency in the creation and harnessing of capital, as well as creating liquidity in the market and adopting and strengthening corporate governance best practices.
Ogola told journalists after the meeting of NSE stakeholders in Abuja that “the demutualisation of the Nigerian Stock Exchange will reinforce the continuous growth and development of a dynamic, fair, transparent and efficient capital market and thus significantly contribute to Nigeria’s economic development”
“Demutualisation is a term used to describe the transition from a mutual association of exchange members, to a limited liability company, accountable to shareholders. Essentially, demutualization separates ownership (and voting rights) from the right of access to trading on an exchange,” he explained.
The meeting attracted all the key stakeholders in the Capital market including; officials of the Central Bank of Nigeria, Securities and Exchange Commission, Nigerian Stock Exchange, Corporate Affairs Commission and Federal Ministry of Finance.