By Claire Wanja
The Nairobi Securities Exchange (NSE) 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.
As a self-regulatory organization, the NSE will continue to work proactively to protect and maintain the confidence of investors and the integrity of 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.
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.”
The NSE is committed to promoting just and equitable principles of trade and sound business practices in the Kenyan capital market by enforcing its listing and trading rules in accordance with global best practices and by ensuring that the standards set out are effective to maintain a fair and orderly market.