By Obinna Chima and Chinazor Megbolu , 09.28.2010
The proposed demutualisation of the Nigerian Stock Exchange (NSE), which was suspended last year would now be concluded in 2012, the Director General, Securities and Exchange Commission (SEC) of Nigeria, Ms Arunma Oteh, has said. Oteh dropped this hint while delivering a speech at the City Securities Limited (CSL) annual lecture held in Lagos yesterday.She said that the Commission would ensure that the demutualisation process is transparent.
The erstwhile council of the NSE had in May 2009, suspended the exercise. Demutualisation refers to the legal structure of an Exchange whereby the ownership, the management and the trading rights at the Exchange are segregated from one another. Oteh also disclosed plans to privatise the Abuja Securities and Commodity Exchange to make it competitive and more efficient in the market. The SEC DG said that a new leadership for the NSE would soon emerge.
“We have a market that endangers investors’ integrity and we must all work together to make sure that we don’t have one bad egg that would undermine the integrity of the market. If we make the Nigerian capital market viable, it would be better for us all. So we must do more to ensure that we have a vibrant and robust market,” Oteh said.She said policies that had been implemented by the Central Bank of Nigeria (CBN) are geared towards stimulating the economy, which according to her, would also have a multiplier effect on the capital market.
On his part, the Interim Administrator of the NSE Mr. Emmanuel Ikhazoboh, said that the forensic audit of the activities of the NSE would be concluded next month.