Lagos – The Stockbrokers on the Nigerian Stock Exchange (NSE) will meet on July 4 to discuss the proposed demutualisation of the NSE, the News Agency of Nigeria (NAN) learnt on Friday.
NAN reports the dealing members at the NSE 55th Annual General Meeting (AGM) on June 23, stopped the special resolution to commence the process leading to the demutualisation of the exchange.
The dealers suspended the special resolution to give room for wider consultations.
But reliable sources told NAN in Lagos that the dealing members had agreed to resume talks on the issue.
Sources said that the meeting would address the grey areas observed in the proposed exercise, especially the role of the stockbrokers and other groups in the post-demutualisation era.
Demutualisation is a process whereby a stock exchange transforms into a Public Limited Liability Company.
By implication, it is a process of converting the NSE into a profit-making organisation listed on itself and any other exchange around the world.
The aim is to enable the management to take actions that are in the best interest of customers and the exchange itself.
A demutualised exchange affords both institutional investors and retail investors the opportunity to become shareholders of an exchange.
The demutualisation is one of the programmes of NSE for 2016.
Mr Emeka Madubuike, President, Association of Stockbroking Houses of Nigeria (ASHON), told NAN that further engagement between the two parties was needed to reach an agreement on the issue.
The ASHON president said that the dealing members would approve the resolutions once the issues were sorted out at an extra-ordinary general meeting to be called by the exchange.
“Demutualisation is so dear to us. An emergency general meeting should be convened so that the issue of this resolution would be taken and resolved at that meeting.
“The stockbrokers are in support of the exercise. We want it to be fast-tracked, we want a quick date for the meeting to consider that resolution,’’ he said. (NAN)
