Demutualisation of NSE may begin second-quarter of 2012

The demutualisation of the Nigerian Stock Exchange (NSE), which is meant to reposition as well as ensure an efficient and competitive capital market, may begin in the second quarter of this year.

This was revealed in the report submitted by the technical committee on the demutualisation of the NSE to the Securities and Exchange Commission on Thursday.

According to the report, the adoption of a demutualised securities exchange would fast-track development as well as deepens the capital market.

The committee believes demutualisation can set up an exchange well on the path to rapid and sustained development in the context of increased globalisation of securities markets and increased competitive tensions if done in line with the current reforms in the Nigerian capital market.

They warned that in order to ensure transparency and engender confidence, the demutualisation of the NSE must be achieved within the framework prescribed by the commission.