Share
Demutualisation: Understanding the task ahead for NSE's five-man claims review panel
The Nigerian Stock Exchange has charged a five-man panel to serve as an independent alternative dispute resolution mechanism which will review and determine the claims with respect to any assertion of rights in the shares of the demutualised exchange. Chairman of the panel, George Etomi, joins CNBC Africa for more.
Tue, 12 Jan 2021 11:37:07 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- The demutualization process of the Nigerian Stock Exchange has led to the creation of shareholders and subsequent disputes over share ownership among various stakeholders.
- The establishment of a claims review panel aims to provide an independent mechanism for resolving disputes and ensuring efficient operations as the exchange transitions into a publicly traded company.
- Panel members bring significant experience in capital market operations and integrity to the table, with a focus on fair and just resolution of claims in line with global standards.
The Nigerian Stock Exchange has charged a five-man panel to serve as an independent alternative dispute resolution mechanism which will review and determine the claims with respect to any assertion of rights in the shares of the demutualised exchange. This move comes as the exchange transitions from a mutual not-for-profit association to a publicly traded company. The Chairman of the panel, George Etomi, recently joined CNBC Africa to discuss the objectives and responsibilities of the claims review panel. The demutualization of the Nigerian Stock Exchange was initiated about a decade ago with the aim of enhancing its activities and allowing its shares to be traded publicly. The process was authorized by the Nigerian Demutualization of the Nigerian Stock Exchange Act of 2018, following which legal and regulatory procedures were diligently followed. As a result of this transition, shareholders were created, and disputes regarding share ownership arose among original founders, dealing members, and other stakeholders. To address these disputes, the claims review panel was established to provide an independent platform for resolving claims related to share allocation and ownership. The panel, appointed for an initial three-year term, aims to streamline the resolution process in line with global standards and ensure the exchange operates efficiently as a publicly traded entity. Despite concerns and initial delays, the demutualization process is expected to have far-reaching benefits for the Nigerian economy, attracting investments and enhancing the exchange's trading capabilities. In the event that the claims review panel is unable to resolve a claim, individuals or entities may still seek recourse through legal avenues. However, the panel's goal is to resolve disputes amicably and expedite the exchange's transition into a fully functional trading platform. The panel members, who bring extensive experience in capital market operations and a commitment to fairness, are gearing up to commence their work, with an emphasis on upholding integrity and delivering equitable solutions for all stakeholders.
SIGN UP FOR OUR NEWSLETTER
DAILY UPDATE
Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent.
Get this delivered to your inbox, and more info about about our products and services. By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.