Demutualization means segregation of

Demutualization refers to the segregation of  ownership rights and management rights from trading rights .  This process transforms a mutual organization, typically a member-owned entity like a stock exchange, into a company that is owned by shareholders. In a mutual organization, the members are both the owners and the users of the services (and thus have trading rights). In a demutualized entity: 

• Ownership rights  and  management rights  are held by the shareholders and a board of directors.

Trading rights  (the ability to trade on the exchange) become a separate matter, often requiring a license or permit, and are no longer intrinsically linked to owning the organization itself.