Why securities’ dealers must embrace demutualisation
Demutualisation is a process by which the Nigerian Stock Exchange (NSE) will convert from a private organisation limited by guarantee to a public limited liability company, which shares can be traded on an organised stock market.
The Chairman of the Association of Securities Dealing Houses of Nigeria (ASHON), Chief Oyinyechukwu Ezeagu, at the 10th yearly general meeting at the weekend, underscored the essence of unity of purpose in pursuit of common professional goal as demutualisation and other emerging institutions in the capital market will enable more opportunities for securities dealers to earn multiple income.
Already, he said the body had embarked on strategic restructuring to bolster the members’ image, consolidate a formidable team and review internal processes among others.
“The process of demutualisation of the NSE is approaching a climax. We expect that we shall transform from being members to shareholders soon.
“It is important that we prepare ourselves for the change in status which comes with some responsibilities and new realities.
“All our members representing us both at the advisory committee and the NSE council have been working tirelessly to defend our collective interests in the demutualisation process.
“In order to effectively reposition the image of the association, we redesigned and changed the brand identity of the association with a logo of progressive bars of different vibrant colors to depict the new thinking and divergent positive outlook of the association.
“By the recommendations of the Transition Committee, the Association changed the nomenclature of its executive Committee to Governing Council and aligned it with the amendment in the constitution.
“Thus, the following are the new structure of the Governing Council; Chairman, 1st Vice Chairman, 2nd Vice Chairman, Treasurer, 4 Council Members, and 1 Ex-officio Member.
“The General Assembly Members had on July 3rd 2018 voted for the change of name of the Association from the Association of Stockbroking Houses of Nigeria to the Association of Securities Dealing Houses of Nigeria as well as a change of Trustees.
“These changes were registered with the Corporate Affairs Commission and we have been issued a new certificate to that effect.
“The Nigerian capital market continued unabated in its downward trend and our members were the worst hit as they watched all market indices slide southwards.
“Instead of bemoaning our condition, the association has set out to reposition itself to expand our horizon by exploring the potentials of trading in other securities like commodities and fixed income,” he said.
Commenting ASHON’s activities, the Chief Executive Officer of Sigma Securities, Dunama Balam, commended the executive for being professional and urged them to sustain the trend.
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