NSE Suspends Overhaul Of Operations, Board, Management

By Femi Okaro Johnson, Lagos
The Nigerian Stock Exchange (NSE) has suspended indefinitely the overhaul of its management and operations through demutualisation.

Demutualisation is a management approach to make the Exchange a profit making organisation.

The adoption of the method had been approved previously by the council of the NSE and other stakeholders.

Under the proposed demutualisation, the organisation planned to have a chairman instead of president of council while the director general will change to group managing director.

We gathered that the Director-General of the NSE, Prof. Ndi Okereke-Onyiuke, told the board of the Securities and Exchange Commission (SEC) that the NSE had decided to shelve the idea.

Okereke-Onyiuke, who did not give reasons for the change of mind, said that SEC had advised the Exchange to tighten up their market surveillance during their meeting on Wednesday.

She said that SEC expressed concern over recent developments in the market and the various allegations of price manipulations and directed her to comply immediately with its directive to lift the suspension on three stockbroking firms.

Meanwhile, the board of SEC has commended the outgoing Director-General of SEC, Mr Musa Al-Faki, for his contributions to the development of the Commission and the capital market.

Al-Faki would be disengaging from the services of the Commission on Friday May 8, 2009.

Mr Lanre Oloyi, Head of SEC Media Department, says that Ms. Daisy Ekineh, Commissioner (Operations) would act as Director-General until a substantive Director-General was appointed.

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