NSE Demutualization: Learning Points from JSE-Michael Larbie, CEO Rand Merchant Bank

Proshare

Thursday, March 05, 2020 / 11:30 AM / Nifemi Taiyese  for WebTV / Header Image Credit: WebTV

 

As the countdown to the Demutualization of the Nigerian Stock Exchange (NSE) begins, experts have been speaking on what the NSE could learn from other demutualized Exchanges in Africa.


The most prominent demutualized African Exchange is the Johannesburg Stock Exchange (JSE), in South Africa, which has a market capitalization of over $900bn.


Speaking on the Demutualization, the MD of Rand Merchant Bank, Mr. Michael Larbie, described it as a welcome development for the Nigerian Stock Exchange.


Rand Merchant Bank, which is a financial advisor to the NSE on the demutualization process, believed it would have a far-reaching impact on the Nigerian capital market.


According to him the learning points for the NSE are anchored in two areas namely;

  • The opportunity for partnerships
  • Linkages in terms of harmonization of rule books


He noted that the JSE had shown the way in Demutualization, and NSE has a good trajectory and should experience remarkable transformation and the deepening of its market, similar to the JSE.


Giving further insight, Mr. Larbie was of the view that the NSE could, through its proposed Demutualization scale, its market operations through investments in technology and product development.


He described it as a milestone for the capital market and a remarkable feat for the NSE.


"With the demutualization, the NSE will become a lot nimbler in terms of decision making, which will allow it to make rules that further deepen the exchange and attract more investors to the platform," Mr. Larbie said.


He said corporate governance would improve, which would position the Exchange to become more attractive for more companies to become listed entities.

 

5 Further Possible Learning Points from the JSE

  • Achieving a highly capitalized Exchange with broad-based listings
  • Improved Technology Infrastructure that positions the NSE as a globally competitive platform
  • Increase in product innovation
  • Linkages and Partnership with 57 other demutualized Exchanges
  • Robust Corporate Governance Framework

 

Larbie added, "There is an excitement about a potential currency for the exchange for investing in technology, to further deepen its platform, attract good talent, which will allow it to be able to compete both in the African continent and global stage as well."


Proshare Nigeria Pvt. Ltd.


Related News

1.       New Lafarge Africa CEO Khaled El-Dokani Visits NSE, Assures Market Of Optimum Performance

2.      AFEX and FMDQ Sign MoU to Promote Product Innovation for Nigeria's Capital Market

3.      Stakeholders List Benefits Of NSE Demutualization

4.      NSE Members Assent to Demutualisation Resolutions at COM and EGM

5.      SEC Nigeria To Host International Commodities Conference On March 16th and 17th 2020

6.  Finance Minister, Zainab Ahmed Visits NSE, Restates FG Commitment To Pro-Capital Market Policies

7.      Speech by The Honourable Minister of Finance on her Visit to The NSE

8.     NSE CEO Opening Speech During the Honourable Minister of Finance Visit to NSE

9.      Domestic and Foreign Portfolio Participation in Equity Trading - January 2020

10.  Growth Board To Roar As NSE's ASeM Slowly Disappears

11.   UPDC To Use N15.961bn Rights Issue To Improve Cash Flow, Create Value For Shareholders

12.  NSEASI Started Well in January 2020, Then Fizzled Out

 

 Proshare Nigeria Pvt. Ltd.


Proshare Nigeria Pvt. Ltd.

READ MORE:
Related News
SCROLL TO TOP