FIM Bill at heart of NSX Transformation
The proposed Financial Institutions and Markets Bill is at the heart of the transformation in ownership structure of the Namibian Stock Exchange. This is in anticipation of the proposed bill to ensure bourse complies. The stock exchange will in due course change from its association structure and become a company.
This is what its Chief Executive Officer Tiaan Bazuin said this week in a sit-down. Further to that, the bourse is eyeing a listing, mimicking the workings of the Johannesburg and Nairobi stock exchanges.
He however did not provide an indication of when the process is set to complete itself but only mooted that the stock exchange was indeed looking at a listing. Said Bazuin, “in anticipation of the proposed Financial Institutions and Markets Bill, we will be required to demutualise the Namibian Stock Exchange. We do not know when the process is anticipated to be completed but are taking the necessary steps to list.”
Talking on the issue, Bazuin said that the proposed bill would compel the Namibian Stock Exchange to demutualise, opening up its ownership to members of the public. To explain the current structure where the stock exchange belongs to its founding members, Bazuin used the example of an exclusive, by invitation only, golf club, stating that a company structure would serve the interests of the public better than the current structure. In other stock exchange developments, Bazuin was also pleased to announce that a new index was introduced. The process, he said, followed consultation with (compilers of the) FTSE Russell. Said Bazuin, “[the] Namibian Stock Exchange is committed to the growth and development of the financial market in Namibia.
The launch of this new dedicated Namibian index series is a testament to the development of the country’s financial markets. We are pleased to be working with FTSE Russell to build these indices which we believe will further encourage investor participation in our markets.”