The Nigerian Stock Exchange (NSE) has approved the process to conclude the demutualisation of the exchange to become a profit-making, limited liability firm.
The approvals were given at a court-ordered meeting (COM) and an extra-ordinary general meeting (EGM) held separately in Lagos.
Demutualisation is the conversion of not-for-profit entity limited by guarantee into a profit-making, public limited liability company owned by shareholders.
Tt the COM, the members assented to the registration of the exchange as Nigerian Exchange Group; the transfer of its securities exchange licence and other assets required to carry out the securities function to Nigerian Exchange Limited and the establishment of a separate subsidiary company to be charged with the regulatory functions of the exchange post-demutualisation to be called NGX Regulation Limited.
The members equally approved the transfer of the assets of NSE Consult Limited, NSE Nominees Limited and Coral Properties Limited – existing subsidiaries of the NSE – to the Nigerian Exchange Group Plc.
They also approved that the exchange will have a total share capital being N1,250,000,000 comprising 2,500,000,000 ordinary shares of 50 kobo each to be registered with the Corporate Affairs Commission (CAC).