•SEC, CAC approve new status for bourse
By Goddy Egene
Stakeholders in the capital market have hailed the final approval given by the Securities and Exchange Commission (SEC) and the Corporate Affairs Commission (CAC) for the demutualisation of the Nigerian Stock Exchange (NSE), saying it will lead to the growth of the market and the economy.
The approval by SEC and CAC has led to the completion of the demutualisation process of the exchange, transforming it into a profit-making and limited liability company.
With the demutualisation, a new non-operating holding company, the Nigerian Exchange Group Plc (NGX Group), has been created with three operating subsidiaries.
The subsidiaries are: Nigerian Exchange Limited (NGX Limited), which will be the operating exchange; NGX Regulation Limited (NGX REGCO), the independent regulation company; and NGX Real Estate Limited (NGX RELCO), the real estate company.
Reacting to the development, the Chairman of Association of Securities Dealing Houses of Nigeria (ASHON), Chief Onyewenchukwu Ezeagu, said the demutualisation of the NSE was one of his happiest moments.
“The development is one of my happiest moments as the Chairman of ASHON, having along with other critical stakeholders delivered on the mandate to demutualise the exchange. Demutualisation will enhance the effective transformation of not only the NSE but also the entire securities ecosystem in particular,” Ezeagu stated.
President, Chartered Institute Stockbrokers (CIS), Mr. Olatunde Amolegbe, also said the approval would herald a new vista in the growth trajectory of the NSE.
“This is a process that already enjoys the support of all market stakeholders because of the immense benefits that we expect that it will bring to investors and the Nigerian economy at large. We expect increased innovation and growth among market participants,” Amolegbe added.
The Executive Director, NOVA Merchant Bank, Ms. Funke Okoya, said the demutualisation of the NSE had birthed a new vista of opportunities for the capital market.According to her, the ownership structure should infuse greater efficiency and enhanced operational bandwidth, which will help to drive liquidity, expand its operations and deepen the market.“The NSE is undoubtedly a critical element in the Nigerian capital market and plays a critical role in the development of the market. With our subsidiary as a broker/dealer on the NSE and of course a shareholder of the new NGX Group, I look forward to new offerings, efficiency gains and renewed service orientation from the leadership, with optimism that such would be complementary to the growth strategies of our […]
