CMA partners with industry players to increase listings
Nairobi January 19, 2017……In a drive to increase listings on the Nairobi Securities Exchange (NSE), in line with the objectives of the 10-year Capital Market Master Plan (2014-2023), the Capital Markets Authority (CMA) has partnered with industry players to engage with companies with the potential to list.
The CMA Chief Executive, Mr. Paul Muthaura, disclosed that the Authority in partnership with industry players will hold a Business Incubator and Accelerator on the Listing Experience event in March 2017.
According to the Master Plan, one of the major challenges identified is the relatively few listings on NSE and the need to increase listings to create deep and more liquid capital markets. To address this challenge, the Master Plan has a target to increase listings on the Growth Enterprise Market Segment (GEMS) of NSE by 3-4 companies annually, which reflects the supply of future main Board listed companies.
Mr. Muthaura said, ‘’The incubator and accelerator experience is intended to give interested companies a realistic and practical feel of the listing process. Interested firms will have an opportunity to participate in a stage by stage, one on one,structured engagement with the CMA, NSE, Nominated Advisors (NOMADS), Transaction advisors, Lawyers, Auditors, Stockbrokers and Investment Banks, among other service providers, to allow for confidential B2B discussions on their readiness for listing’’.
Mr. Muthaura explained that the areas of engagement on the listing process will include: identifying business needs/strategy issues, developing business plans, considerations for the appointment advisors & other agents, mandating negotiation, required documentation, regulatory and other approvals, the process of issue placement and allotment, and fees and timelines.
The CMA Chief Executive explained that the Authority will also work with business incubators to accelerate the growth and success of entrepreneurial companies through an array of business support resources and services to engage with firms that are not ready to list but have promising prospects that could be nurtured through incubation. This is geared to develop a pipeline of successful businesses to be listed in the future. Participation in the event is free and interested companies are invited to book their slots by 10 February 2017.
BACKROUND INFORMATION ON THE CAPITAL MARKETS AUTHORITY
The Capital Markets Authority (CMA) was set up in 1989 as a statutory agency under the Capital Markets Act Cap 485A. It is charged with the prime responsibility of both regulating and developing an orderly, fair and efficient capital markets in Kenya with the view to promoting market integrity and investor confidence.
The regulatory functions of the Authority as provided by the Act and the regulations include; Licensing and supervising all the capital market intermediaries; Ensuring compliance with the legal and regulatory framework by all market participants; Regulating public offers of securities, such as equities and bonds & the issuance of other capital market products such as collective investment schemes; Promoting market development through research on new products and services; Reviewing the legal framework to respond to market dynamics; Promoting investor education and public awareness; and Protecting investors’ interest.