BY SEYIFUNMI LUMEKO
The Nigerian Stock Exchange (NSE) is set to be a public limited liability company, as the Securities and Exchange Commission (SEC) and the regulatory body for corporate affairs, Corporate Affairs Commission (CAC) gave the final approvals for the conversion.
The development has paved the way for NSE to public listing and trading of the shares of the Exchange.
Before it was approved, NSE was a mutual, member-owned company, but now a public limited liability company.
With these approvals, the Exchange has now completed its demutualisation process.
Therefore, under the demutualisation plan, a new non-operating holding company, the Nigerian Exchange Group Plc (‘NGX Group’) has been created.
The Group 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.
President, Nigerian Stock Exchange (NSE), Otunba Abimbola Ogunbanjo, said the successful demutualisation was one of his fundamental objectives when he assumed the presidency of the Exchange, noting that 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.
Ogunbajo said: “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.”