Demutualization stock market nigerian

A Nigerian newspaper and Online version of the Vanguard, a daily publication in Nigeria covering Niger delta, general national news, politics, business, energy, sports, entertainment, fashion,lifestyle human interest stories, etc.

By Peter Egwuatu As part of its effort to transform the Nigerian capital market in accordance with global practice, the Securities and Exchange Commission SECsaid, it is determined to demutualise the Nigerian Stock Exchange NSE. Demutualisation is a process by which a member-owned Exchange is converted to a shareholder-owned Exchange. With demutualisation, the NSE should be exposed to robust corporate governance; enhanced efficiency and transparency associated with publicly quoted companies.

Demutualisation allows the Exchange to be listed on its own floor where investors would have the opportunity of investing in the self-regulatory organisation. Demutualization is just part of the overall reform that SEC is putting in place to help reposition the capital market. SEC is setting up a regulatory committee to curb the downward movement in share prices. The Commission is leaving no stone unturned to ensure the success of the e-dividend policy. The Commission is also set to audit shareholders associations as part of the overall efforts to restore confidence in the capital market.

A member committee has been appointed by the Commission to review and recommend on how to demutulise the NSE.

This is being chaired by Mr. Some other members include the Dean of Lagos Business School, Enase Okonedo, and the Chief Executive Officer of NSE, Mr.

Oscar Onyema, among others. Oteh, further noted that a number of measures had been put in place by the Commission including the setting up of two Committees: Dotun Sulaiman, and the second to review the Code of Corporate Governance for public companies under Mr. The recommendations of the two committees have since been largely implemented.

In particular, a new Code of Corporate Governance for public companies has been issued by the Commission and it came into effect on April 1, All these are being compiled by SEC in a single document for ease of reference.

Nigeria SEC says bourse may be demutualized - MarketWatch

The Commission has also been taking steps to improve the governance structure of the NSE and to ensure that capital market operations are conducted in accordance with the highest global standards. An illustration of this was the highly transparent process, conducted by the Council of the Exchange, in line with the directives of the Commission, for the appointment of the new executive management team of the Exchange.

This must be a process that ensures fairness and openness, as well as the protection of the national interest. However, the Commission has started in a good direction of making the process transparent by the recently appointed committee members. It should be noted that the major weakness of the NSE is its constitution Mutual Exchange. At the how much money does gold and silver pawn shop make, the three characteristics or functions of ownership, management and trading are concentrated into a single group.

Here, the broker members of the Exchange are both the owners and the traders on the Exchange and they further manage the NSE as well.

NSE Announces Financial Advisers for Demutualisation

This can sometimes lead to conflict of interest in decision making. A demutualised Exchange, on the other hand, has all these three functions clearly segregated, i.

Many local and foreign investors feel that the NSE does not provide the flexibility to adequately meet these new challenges of the stock market. Hence demutualization is seen as the panacea for its problems.

However, implementing a demutualization programme is not trivial. It represents a wholesale corporate cultural transformation — changing every dimension demutualization stock market nigerian an Exchange. Exchanges in advanced economies are seen as platforms for creating fair and efficient stock market, with a duty to protect the public interest.

In advance markets, Exchanges face competition and are typically not saddled with an exclusive public policy role. Accordingly, demutualization programmme has a greater probability of success and facilitates a truly global business.

There are a whole range of issues that need to be analyzed and considered before demutualization commences: What infrastructure needs to be in place to achieve the desired results?

What is the appropriate corporate governance structure for an exchange? How does the demutualised entity provide for stakeholder value and profitability? Can you achieve your interbank currency rates in pakistan goals, and in particular your target earnings rates when regulators are setting moving targets?

These are just some of the many questions that need to be answered by the SEC technical committee on demutualization. There are areas of demutualization that proved to be problematic. One of the most difficult aspects of demutualization is the adoption of the correct corporate structure. Corporate structure is the first rung of the demutualization ladder and will adversely affect all other stages unless the optimal solution is implemented. Do you want to be a stronger The much-vilified Nigeria Police Force, NPF, has something to crow about forex danska kronan consistently being in the news for its in Middle belt youths have condemned the recent quit notice issued Igbo living in the North by Arewa Youth Consultative For A year-old man on Friday told an Ibadan Customary Court, sitting in Agodi, how his wife of 38 years committed adulter There is an increasing culture of celebrating corruption in the country.

There are no Nigerians working with the Chinese there, leaving us with the scepter that any breakdown will still have to But the Eze of Nigeria is confronted with a new demon in school as Fulani herdsmen are no longer satisfied with inv Skip to content Home About Us Advertise With Us contact us.

Vanguard News A Nigerian newspaper and Online version of the Vanguard, a daily publication in Nigeria covering Niger delta, general national news, politics, business, energy, sports, entertainment, fashion,lifestyle human interest stories, etc.

Why SEC is determined to demutualise NSE. On October 24, Previous Post Talk of the angel! Next Post Try killer cops now, Fayemi tells Police. Disclaimer Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.

Three Russians banned after Beijing retesting. Women secretly Reveals Reasons Why Nigerian Men Are Very Terrible on Bed! Know your perfume before buying.

Nigeria: Demutualisation, Alternative Stock Market and Investors' Confidence - jyfyyuxy.web.fc2.com

How To Completely Improve Your Sexual Performance Today. Fiscal federalism viability of states. Before the Senate roundtable on banks.

Navy, Police bloody clash in Calabar. No going anywhere, Ndigbo vow Angry residents protest power cut.

Evans advises kidnappers to stop crime. Middle Belt youths dissociate region from Igbo quit notice Middle belt youths have condemned the recent quit notice issued Igbo living in the North by Arewa Youth Consultative For Ethnic groups urge Osinbajo to beg Ndigbo to forgive Northern youths.

Only Igbo presidency in will stop Biafran agitation — Ohaneze youths. Paddy-paddy government and their wuruwuru to the answer There is an increasing culture of celebrating corruption in the country. Planning and budgeting in fantastically corrupt countries With regard to the budgetary process itself, there are several critical issues we must overcome Read More.

What does the Minister of Aviation do? Malu goes to school But the Eze of Nigeria is confronted with a new demon in school as Fulani herdsmen are no longer satisfied with inv The last act So far, none of those who annulled the election, have spoken on how the annulment came to be. The Arts Tummy Talk Woman. Columns Monday Sport Bassey People And Politics Rational Perspectives Sobowale on Business Broken Links Owei Lakemfa Tuesday Femi Aribisala Dispatches from America.

Sunday Frankly Speaking Sunday Perspectives Nigeria Today The Orbit Outside Looking In Joyful Homes Article of Faith. Home About Us Advertise With Us contact us.