WFE Chief Explains How Demutualisation Will Make NSE More Efficient

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Nigerian Stock Exchange (NSE) Logo.

The conversion of the Nigerian Stock Exchange (NSE) from a mutual member-owned organisation to a public limited liability company owned by shareholders will make the Exchange more efficient and dynamic, opening up many global opportunities for the advancement of the market.

Speaking at the Stockbrokers’ Conference of the Chartered Institute of Stockbrokers, Chief Executive Officer, World Federation of Exchanges (WFE), Nandini Sukumar said the conversion, known as demutualisation, would bring more benefits to the NSE.

According to her, every member of a stock exchange embraces demutualisation because of its benefits which include realisation of the value of historical asset, improvement in market quality, liquidity, trading costs and price volatility.

She added that demutualisation will make the exchange to be efficient, well run and dynamic. She noted that there would also be realisation of unique opportunity that can create value through the demutualisation and Initial Public Offering (IPO), allowing the members to become ownership and customer while providing opportunity for investment in market infrastructure.

In his presentation on “Rebirth of CAMA: Implications for the Capital Market Ecosystem”, Co-founder, Banwo and Ighodalo and Chairman, Sterling Bank, Mr Asue Ighodalo who made a critique of the new Companies and Allied Matters Act (CAMA) noted that while the new CAMA contains many sections that would enhance the growth and development of the capital market, there is a need to review some new sections that could inhibit market growth.

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