The Nigerian Stock Exchange has announced the inauguration of a five-man claims review panel in preparation for the Exchange’s imminent demutualisation.
The disclosure was made by the NSE (The Exchange) through a verified post on their website, seen by Nairametrics.
The formation of the panel is pursuant to the provisions of the Demutualization of the Nigerian Stock Exchange Act 2018.
The experts appointed into the panel are; Mr. George Etomi (Chairman); Mr. Seni Adio, SAN; Mr. Abatcha Bulama; Dr. Paul Anababa, SAN and Prince Aghatise Erediauwa.
What this means
According to the notice, the Panel will help in dispute resolution by independently reviewing and determining Claims made by individuals or corporate bodies in respect of any rights to the shares of the demutualised Exchange.
In addition, the Panel will perform an adjudicatory role by acting in an appellate capacity for dissatisfied claimants who objects any decision of the National Council of the Exchange on a claim pre-demutualization or the Board of Directors of the HoldCo after the demutualization process.
What you should know
Demutualization is the process by which an exchange is converted from a company owned by members or brokers, to one in which members of the public can buy shares.
Nairametrics learnt that the panel was inaugurated on the 21st of December, 2020.
As part of the demutualisation process, The Exchange (which is currently a company limited by guarantee) would be converted into and re-registered as a public company limited by shares.
In lieu of this, current Members of The Exchange will be allocated shares in the HoldCo.
The Group will have three operating subsidiaries – Nigerian Exchange Limited (NGX), the operating exchange; NGX Regulation Limited (NGX REGCO), the independent regulatory arm; and NGX Real Estate Limited (NGX RELCO), the real estate company – forming the group.
In line with the demutualization agenda, Nairametrics earlier reported the appointment of Oscar Onyema as the new Group Chief Executive Officer, Nigerian Exchange Group Plc, and the appointment of Temi Popoola and Tinuade Awe as CEOs of Nigerian Exchange limited and NGX Regulation limited respectively.
Efforts to demutualize the Nigerian Stock Exchange have been a long-standing one.
The Securities and Exchange Commission (SEC) in 2015 issued the Exposure draft rules on demutualization of exchanges in Nigeria.
The same year, the Nigerian Stock Exchange appointed a consortium of Rand Merchant Bank (RMB) and Chapel Hill Denham (CHD) as financial advisers to facilitate the proposed demutualization.
In 2018, the House of Representatives passed a bill that amended the laws that established the NSE. This is sequel to a similar action by the senate, all in a bid to hit the ground running for the take-off of the demutualization process.