The Securities and Exchange Commission (SEC), Nigerian Stock Exchange (NSE) and dealing members (stockbrokers) of the NSE last week commenced fresh  consultative  process  towards a  smooth demutualisation of the Exchange, THISDAY checks have revealed.

Dealing members of the exchange, who are the owners of the exchange, had vowed to oppose the planned demutualisation if  SEC and NSE fail  to carry them along in the process.

They had complained of plans by certain individuals to sideline them and use the demutualisation process to hijack the exchange.

However, THISDAY checks revealed that  the apex regulator of the nation’s capital market and NSE have shown signs of working together with the dealing members to ensure a successful demutualisation of the  Nigerian bourse.

It was gathered that a workshop on the demutualisation of the exchange was organised last week by SEC where experts who have participated in the demutualisation of the some exchanges were brought to  address  most of the contending issues.

A source, which represented the Association of Stockbroking Houses of Nigeria (ASHON) at the workshop told THISDAY that the Director-General of  SEC, Ms. Arunma Oteh, the Chief Executive Officer of the NSE, Mr. Oscar Onyema and leadership of the trade groups in the market expressed satisfaction at the outcome of the workshop.

“It is becoming clearer that  SEC and NSE are seeing the need to carry the dealing members and other stakeholders along in the efforts to demutualise the Exchange. They are beginning to realise that their former hard-line stance would not bring the desired result. In fact, everybody was happy at the end of the workshop because it has helped to address some of the thorny issues,” the source said.

Another source, who attended the workshop noted that the dealing members would still meet and send their position to  the council of the exchange and SEC on how  they believe the demutualisation exercise  should be handled.
The technical committee on the Demutualisation of the NSE set up last year by SEC recently submitted its report to the Commission. 

Speaking on the report, the  Chairman of the Committee, Mr. Asue Ighodalo,  said the  two-volume should be thoroughly studied.

According to him,  SEC should act on  recommendations made in the report  as a desirable step towards the holistic transformation of the Nigerian Stock Exchange in order to improve its efficiency and impact positively on investments.

While warning against the slavish adoption of demutualisation models and experiences of other countries, Ighodalo pointed out that the committee was of the belief that  there was  no “one-size-fits-all” approach  to demutualisation.

“Therefore,  the demutualisation model and processes adopted by the commission should give due consideration to the rationale behind demutualisation  in the Nigerian context as well as other local peculiarities,” he said.

Source: Thisday/Goddy Egene