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NSE evolves into public liability company

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THE Nigerian Stock Exchange (NSE) has received final approvals for its ongoing conversion from a mutual, member-owned company to a public limited liability company, paving the way for the public listing and trading of the shares of the exchange in the nearest future.

  The conversion is in line with the demutualisation policy of the federal government.

Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC) and the regulatory body for corporate affairs, Corporate Affairs Commission (CAC) gave the final approvals for the conversion, yesterday.

  With these approvals, the exchange has now completed its demutualisation process.

President of Nigerian Stock Exchange (NSE), Abimbola Ogunbanjo, said the successful demutualisation was one of his fundamental objectives he drew for the exchange when he assumed its presidency.

  According to him, SEC’s decision today to approve the NSE’s demutualisation plans brings this aspiration to a successful conclusion in a process that included the passage of the Demutualisation Act through the National Assembly.

   “We are elated that this milestone has been achieved as we celebrate the 60th anniversary of the commencement of trading at the Exchange and now look forward to the future public listing of its shares on NGX Limited. On behalf of the NSE, I would like to warmly thank all those that have worked assiduously to achieve this watershed event on our journey to make the NSE a multifaceted exchange that extends across various markets and geographical regions,” Ogunbajo said.

  The approvals by the SEC and CAC signify that the NSE can now activate its transition plan to a new operational structure and holding company. The extensive transition plan, taking the group and its subsidiaries through to full operational launch, covers legal and practical changes to enable the functioning of the new corporate structure, with no loss of service and a seamless transition for market participants.

  Under the demutualization, NSE Plc will have three operating subsidiaries: Nigerian Exchange Limited (NGX Limited), the operating exchange; NGX Regulation Limited (NGX REGCO), the independent regulation company; and NGX Real Estate Limited (NGX RELCO), the real estate company. All the entities have been duly registered at the CAC.

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