Shareholder leader query NSEs proposed demutualisation




Proshare NI

January 19, 2009 at 08:51 GMT


Shareholder Leader, Boniface Okezie, National Chairman Progressive Shareholders Association of Nigeria (PSAN) in Lagos Nigeria queried the proposed demutualisation of the Nigerian Stock Exchange (NSE), questioning its importance to the Nation’s Stock Exchange and its operations.


“I do not know where they got such terminologies from, did this happen in South Africa, Egypt, Kenya, London or the New York Stock Exchanges” Okezie queried.


He asserts that if demutualisation is not happening in all these other countries, “then why in Nigeria and what would be achieve from such an idea?  He said.


Okezie further affirmed that the NSE have in the past operated as a non-profit making organisation, would these then now enable them to make profit. Or do they want investors to buy into the Stock Exchange as a company, what is the prime motive for the de-mutualisation? He asked.


“Other questions are would this help the market to grow or enable them to regulate properly?  If not, they should cancel such an idea and face their work; by maintaining sanity on the Floors of the Exchange” Okezie said.


The Shareholder Leader asserts that the NSE should be a watchdog on the companies quoted on the Exchange; “for example, if things go wrong with some companies, does the NSE find out what has gone wrong. And help in solving the problem so that the companies would bounce back to status quo and generate results to investors” he said.


Okezie also affirmed that the NSE should find means of restructuring its activities and operate in order to stand the test of time.


“As at today, the Market would continue to crash until something tangible is done and money get into the hands of people to buy shares again” he said.


Okezie further affirmed that as at today, the Market is experiencing lack of confidence; “people are not having confidence in the Nigerian Capital Market anymore. People are rather trying to sell the shares they have in order to meet their needs; more especially this January” he said.


The NSE should liaise with the Government in order to bailout the Market. “Like I have affirmed on several occasions, the companies are doing well as far as I am concerned” he said.


Professor (Mrs.) Ndi Okereke-Onyiuke, Director General/Chief Executive Officer (DG/CEO) of the NSE on Monday January 12 2009 while reviewing the Market performance in year 2008 and outlook for year 2009, affirmed that the Stock Exchange would demutualise.


“Like any organisation operating in today’s dynamic environment, the NSE commits itself to sustained transformation of its policies, people processes and practices.


In today’s globalised environment, we are resolved to match competition for access to capital from anywhere in the wide world that is available. In this regard, the areas to be covered include but are not limited to: demutualization, dematerialisation, new product, Capacity building and continuous IT programme management” Okereke-Onyiuke said.



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