The Securities and Exchange Commission (SEC) says it is reviewing the Nigerian Stock Exchange (NSE) demutualisation application.
Ms Mary Uduk, SEC acting Director-General, disclosed this at the third quarter post-Capital Market Committee (CMC) meeting news conference held in Lagos on Friday.
She explained that the Demutualisation is the process through which any member-owned organisation becomes a shareholder-owned company. Basically, it refers to the conversion of a non-profit, mutually owned company to a for-profit entity limited by shares.
Demutualisation segregates ownership and management from the trading rights of the members of an exchange.
Uduk assured that the Commission would ensure a transparent and equitable process in the exercise.
“We have the framework, properly put out framework for the registration of demutualisation for any exchange whatsoever, irrespective of the name it is called. What we are doing, we are reviewing the application that NSE has submitted; after the review, we will get back to them. The process is not a very simple process because we have to be thorough, this is very important in the milestone in the annals of the Nigerian capital market. That is what we are doing, to tell you how transparent we are, we just received a feedback from them just two days ago upon our letters to them regarding what we are reviewing.
“So, it is on course, be rest assured that SEC will do what it should do to come out with a transparent and equitable process,” she said. The NSE in 2017 announced that its members had approved its demutualisation scheme. It said that the decision was reached at the Extra-Ordinary General Meeting of its members held on March 30, 2017. Speaking on e-Dividend Mandate Management System (e-DMMS) introduced to curb unclaimed dividends, Uduk said that a total of 2.82 million had enrolled into the platform at the end of third quarter 2019. She said that registrars had been directed to discontinue the practice of requesting for confirmation of bank signature during the E-DMMS process to tackle unclaimed dividends. Uduk said that capital market operators were to display awareness campaign banners of e-DMMS at their offices and venue of Annual General Meetings (AGM). She stated that the Non-interest Finance Committee presented the importance of granting the PFAs the permission to invest a given percentage of a willing contributor’s Retirement Savings Accounts in Non-Interest capital market products.