Lagos, Nigeria (MBC News) - The plans for the demutualisation of the Nigerian Stock Exchange continues apace as competent sources told MBC News Corp that a proposal to make the NSE a publicly quoted company has been submitted to the Securities & Exchange Commission (SEC) by Renaissance Capital, an investment bank and licensed market operator.
Sources told MBC that the proposal document of about 60 pages titled - Demutualisation of NSE Proposal was dated March 23, 2011 and submitted to the capital market regulator for consideration. It was suggested by sources that the SEC commissioned Renaissance Capital to put together the NSE demutualisation proposal.
A few weeks ago, BusinessDay, Nigeria's leading daily financial newspaper published a front-page exclusive story stating that the demutualisation of the Nigerian Stock Exchange will be carried out by the end of the first half of this year by the Securities & Exchange Commission. A few days later, however, the newspaper published an editorial stating that the demutualisation of the NSE must not be rushed and that the Stock Exchange must not be sold to individuals or group of persons with no technical competence or integrity. The capital market regulator had indicated that the demutualisation of NSE is a process that will not be rushed and may not be effected until 2012.
It is unclear if the Renaissance Capital's proposal to SEC on NSE demutualisation was informed by the countdown to the exit of Emmanuel Ikhazoboh as the Interim Head of the Nigerian Stock Exchange and the incoming of a new full-time Director General of the Exchange on April 04. A new CEO of the Stock Exchange was selected by the NSE Interim Council and Management earlier in the year after a rigorous selection process.