BY PETER EGWUATU
The Securities and Exchange Commission (SEC), said it is to meet the Bureau of Public Enterprises (BPE), to discuss issues on the already privatized entities with a view of making them to list their shares on the Nigerian Stock Exchange (NSE).

The Commission also disclosed that the demutualization of the NSE is still on course as it is still working on the framework and guideline that would be put in place before the exercise takes off.

Director General, SEC, Ms. Arunma Oteh, who disclosed this during the fourth quarter meeting of Capital Market Committees (CMC), said, “ The Commission will be working with the BPE to ensure that already privatized entities before now are listed on the NSE based on the agreement they had with the Bureau.

For instance Eleme Petrochemical, one of the companies previously privatized is doing well and the portion of government shares could be listed on the Exchange to allow the indigenes own stake and participate in the fortune of the entity.”

She expressed confidence that volume and value of transactions on the NSE will increase when some of the recently privatized entities in the power sector list on the Exchange.

She commended the NSE on its effort in attracting more companies list of the Exchange, saying “This is the reason why the Commission approved the multiple listing requirements recommended by the NSE. This has not been in existence before now. So it is because of its importance that we approved it. We hope by first quarter of 2013, we shall see more companies list on the NSE.”

On the issue of demutualising the NSE, she said, “The committee on demutualization has finished its work and we are currently working on the frame work and guideline that will be put in place. Once we are through, the Commission will announce it.  Demutualization will ensure owners of the Exchange get real value of their entity.”

Demutualization is a process of making a local stock exchange get listed on its own exchange as well as in other stock exchanges around the world. In fact, It is a process of making an Exchange becomes a publicly quoted entity.

Speaking further, Oteh, disclosed that the issue of consolidation of stockbrokers is still on course as committee on market development is still working with Association of Stock broking Houses of Nigeria (ASHON) to come up with modalities in how to address minimum capital requirement, technology upgrade, manpower development etc.

The SEC boss further noted that a new investment guideline as it affect capital market from Nigerian Pension Commission ( PENCOM) will soon be released  as this will help further boost activities in the market.

 

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