Regulatory Alerts2017-07-25
Rules for Demutualization of Securities Exchanges in Nigeria
These regulations establish the mandatory procedures and requirements for securities exchanges in Nigeria transitioning from member-owned organizations to shareholder-owned companies. The rules impose strict ownership caps, limiting individual stakeholders to 5% and specific stakeholder groups to a maximum of 40% equity, while necessitating Commission approval for all structural changes and leadership appointments. Furthermore, the framework mandates that exchanges must implement independent governance structures, achieve specific shareholding reductions within five years, and formally separate their commercial and regulatory functions.
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