NAIROBI, May 4 (Xinhua) -- Kenya's financial markets regulator, the Capital Markets Authority (CMA) said Wednesday it has developed new guidelines seeking to increase listings at the Nairobi Securities Exchange (NSE) especially by small and medium-sized enterprises (SMEs) as the bourse enters its sixth year without any initial public offering (IPO).
CMA chief executive officer Wyckliffe Shamiah said the regulations will enable access to the capital markets by SMEs to raise both equity and debt capital as well as enhance investor protection, he said in a statement.
Shamiah explained that the review is an important step to align the regulatory framework to market realities, including the advancement of technology.
The regulations introduce two new market segments for SMEs namely SME Fixed Income Securities Market Segment (SME FISMS) and Small and Medium Enterprises Market Segment (SMEMS).
SME FISMS is a market segment for listing debt securities with an initial offer size below 250 million shillings (about 2.2 million U.S. dollars) or an amount set by CMA. On the other hand, the SMEMS is a market segment for listing non-debt securities issued by SMEs.
"In recognition of the advancements in technology, electronic offers of securities have been introduced, considering the use of the internet or other automated means. This caters for offers where investors subscribe by submitting applications electronically or the applications and allotments are processed and completed electronically," he said. ■