The Nairobi Securities Exchange has received formal recognition as a Self Regulatory Organization (SRO) from the Capital Markets Authority (CMA) pursuant to Section 18B(3) of the Capital Markets Act.
Following the approval, the NSE has been given the powers and mandate to admit companies seeking to list on the exchange.NSE will also have powers to monitor listed companies to ensure compliance with the standards currently in place.An additional function which will be taken by the NSE will be to admit new trading participants into the market.
“The Exchange’s recognition as an SRO comes after it successfully put in place independent management structures for its commercial and regulatory functions in line with the Capital Markets (Demutualization of the Nairobi Securities Exchange Limited) Regulations, 2012.” said NSE in a statement
Commenting on the news, the Chief Executive of NSE, Mr. Geoffrey Odundo noted, “This is a positive development for the industry and well deserved as NSE has ably demonstrated over the last six decades of its unique role in building the standards and practices for the Capital Markets. As we ready ourselves for the launch of the Derivatives Market, this milestone allows us to be the first line regulator for the market with an overarching goal of preserving market integrity and protecting investors.”