NSE gets CMA nod to self regulate

NSE gets CMA nod to self regulate

The Nairobi Securities Exchange has received formal recognition as a self- regulatory organization (SRO) from the Capital Markets Authority (CMA). The recognition will allow the bourse to regulate itself as well getting powers to approve listings of firms and setting of market fees.

The exchange’s recognition as an self regulating entity comes after it successfully put in place independent management structures for its commercial and regulatory functions. The NSE underwent a demutualization process in 2014 which also saw the bourse self list.

“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,” NSE Chief Executive Officer Geoffrey Odundo said.

As a self regulated organization, the NSE will be able to monitor compliance of listed firms, admit trading participants as well as approving request of firms looking to list.

The NSE has already been self regulating itself with admission of trading participants for the derivatives market.

“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,” Mr Odundo added.

The self regulation is in line with the CMA’s 10 year master plan which gives the NSE, the authority to set its own fees so that it can obtain and allocate the resources it needs to rapidly respond to market developments and opportunities.

The NSE already had partial self regulatory capacity which allowed it to approve listings of firms joining by introduction or those listing on the growth and enterprise market segment (GEMS).

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