On Tuesday, a de-mutualisation bill passed the second reading. It may permit the re-registration of the Stock Exchange by a company limited by guarantee to a public limited company by shares.
This law has already been titled the de-mutualisation bill. Its primary sponsor is Foster Ogola, the acting chairman of the Senate Committee on Capital Markets. He told that the planned stock exchange de-mutualisation was an essential part of the ten-year Capital Markets Master Plan, which should drive the quick increase of the market during the next ten years.
The politician also added that this law must boost the worth of the stock exchange, allowing it competing constructively in the international markets, informs Naij.com.
Foster Ogola emphasized that the quick approval of that bill would undoubtedly cause considerable drive for the growth of the stock exchange. It will also consolidate its innovativeness and strengthen the leadership in both international and local levels.
“If finally adopted, the de-mutualisation Bill will able to support the Nigerian economic growth in the best way,” concluded Foster Ogola.
Senator Mao Ohuabunwa, who supports the law significantly, told that when the de-mutualisation was implemented, it would immediately allow the NSE taking numerous strengthening measures, which would endorse clearness and boost efficiency in all operations.
The senator also named the main advantages that Nigeria`s economy will gain from that law. The key to them is attraction of local and foreign shareholders, augment of capital raising capabilities, increase of Nigeria’s debt profile, money support for all government initiatives, etc.