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Nigerian Stock Exchange Inaugurates Claims Review Panel

Published

2 years ago

January 8, 2021

The Nigerian Stock Exchange (NSE) on Friday announced the inauguration of its Claims Review Panel in preparation for its planned demutualisation.

A statement signed by the Head, Corporate Communications at the exchange, Olumide Orojimi, said the panel was constituted on December 21, 2020, pursuant to the provisions of the Demutualisation of The Nigerian Stock Exchange Act 2018.

According to the NSE, the panel serves as an independent alternative dispute resolution mechanism for the review and determination of claims made by individuals or entities in respect of any assertion of rights in the shares of the demutualised exchange, Nigerian Exchange Group Plc (HoldCo).

It said the panel would sit in an appellate capacity and review claims from claimants’ who are dissatisfied with any decision of the national council of the exchange on a claim pre-demutualisation, or the Board of Directors of the HoldCo, post demutualisation of the exchange.

As part of the demutualisation process, it said the NSE, which is currently a company limited by guarantee, would be converted into and re-registered as a public company limited by shares.

It added that current members of the exchange would be allocated shares in the HoldCo.

“The securities exchange license of the current Exchange would be transferred to Nigerian Exchange Limited, a wholly owned subsidiary of the HoldCo, which would carry on the securities exchange business. Another wholly owned subsidiary, NGX Regulation Limited, would be licensed by the Securities and Exchange Commission (SEC), to carry out regulatory services,” the statement said.

To safeguard the independence of the panel, the exchange announce the appointment of the following members of the Panel as Mr George Etomi who is the Chairman of the panel; Mr Seni Adio; Mr Abatcha Bulama ; Dr Paul Anababa; and Prince Aghatise Erediauwa.

At the panel’s inauguration, the President, NSE, Otunba Abimbola Ogunbanjo, said he “expected members of the panel to discharge their responsibilities without any fear or favour in an objective and dispassionate manner, being guided by principles of fair hearing, equity and natural justice.”

He expressed optimism that the panel would diligently carry out its functions and responsibilities under the Act and that each member would bring to bear their respective experience and expertise to enrich deliberations and decisions.