Securities and Exchange Commission SEC, the apex regulatory agency of the Nigerian capital market, stepped up efforts for the demutualisation of The Nigerian Stock Exchange (NSE), when it issued “Exposure draft rules on demutualisation of exchanges in Nigeria.”

File photo: The floor of Stock exchange

Shareholders in this interview commend the move which they describe as a welcome development that they have been expecting long time ago.

By PROVIDENCE OBUH

Mr. Taiwo Oderinde – National Coordinator at Proactive Shareholders Association of Nigeria: It is better because we are part of the groups that have been advocating the demutualisation of the Stock Exchange. If you look at some jurisdictions, some of their Exchanges are quoted while they try to adopt different models which we are trying to adopt presently.

Demutualization will really help the investors because when people know that their own exchange is also quoted, there are some of the ways they will regulate better than when they have no stake. They are now aware that any regulation they are bringing will also affect them too.

It will make them to be more proactive and it will make them to be able to do things in a business like manner. Aside from that, you discover that it will attract more companies to our Exchange and moreover it will encourage more investors, most especially the core investors and the institutional investors such as PFA’s and international investors. This is one area that will help the stock market and we the investors. This is thinking in the right arrangement.