Capital Markets Authority is reviewing its legal systems to minimize restrictions and reduce the cost of compliance in efforts to attract more SMEs to list on the bourse.
CMA acting chief executive Wycliffe Shamiah says the new rules will among other things lower the minimum capital for SMEs.
The Nairobi Securities Exchange has struggled to attract new listings in recent years with the number of listed firms currently at 64.
This is blamed on the stringent rules and compliance costs for listed companies that have seen most SMEs shy from listing their shares on the bourse.
An outcry from firms as well as other stakeholders has seen the Capital Markets Authority start the process of reviewing the regulations to among others reduce the minimum the share capital for listing firms in efforts to attract small firms.
CMA acting Chief executive Wycliffe Shamiah says there is a lot of cash being held by individuals and corporates that could be invested at the bourse to make it more vibrant.
This as the latest capital markets soundness report recommends for more investments in human capital to propel innovations that can attract both local and foreign funding.
Shamiah warned listed companies against issuing profit warnings late urging firms ensure they issue a profit warning within 24 hours of the board becoming aware that profit could reduce by more than 25 percent.