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


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."

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 Proshare Nigeria Pvt. Ltd.

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