Demutualisation transforms a stock exchange from self-regulatory organisation (which the NSE is today), with no shareholders, to a public company that is shareowner-based and profit-seeking.
“I believe that there is a better chance that the prayers will be answered tomorrow (today) after the spirit of engagement with members of the Exchange,” a market source told BusinessDay.
Today’s approval for demutualisation of Nigerian Stock Exchange will herald the conversion of the Exchange from a member-owned mutual organisation to shareholder-owned public limited liability company that aligns with global best practices.
Barely five months ago, Nigerian Stock Exchange appointed the consortium of Rand Merchant Bank (RMB) and Chapel Hill Denham (CHD) as financial advisers on the proposed demutualisation of the Exchange.
Some publicly listed Exchanges across the globe include: Bursa Malaysia, Deutsche Börse, Hong Kong Exchanges, Johannesburg Stock Exchange, London Stock Exchange Group, NASDAQ OMX Group, NYSE Euro next, Athens Stock Exchange, Australian Securities Exchange, and BM&F BOVESPA S.A.
