NSE-Web-Prospectus-2014

days after the sale of their shares. The buyers of these shares would
have their CDS accounts credited with the shares, at the same
time. July 6: The Nairobi Stock Exchange Limited changed its name
to the Nairobi Securities Exchange Limited. The change of name
was a reflection of the 2010 – 2014 strategic plan of the Nairobi
Securities Exchange to evolve into a full service securities exchange
which supports trading, clearing and settlement of equities, debt,
derivatives and other associated instruments. August 1: The
business segments under which our listed companies are placed
were reclassified. Equities were now under ten (10) industry
sectors. Debt securities including preference shares were under
three (3) categories. This reclassification brought The Exchange
closer to international best practise and would enable domestic and
international investors compare company and sector performance
more easily. September: The NSE re-converted to a company
limited by shares. November 8: The NSE together with FTSE
International launched the FTSE NSE Kenya 15 and FTSE NSE Kenya
25 Equity Indices. The launch of the indices was the result of an
extensive market consultation process with local asset owners and
fund managers and reflected the growing interest in new domestic
investment and diversification opportunities in the East African
region. Designed to enhance and capture the depth of information
available on the Kenyan market, the indices were a suitable
foundation for exchange traded funds and other index-linked
products which could also be utilised by global investors wishing
to access this frontier market. These indices run concurrently with
the NSE 20 Share and NSE All Share indices. The branded indices
gave the NSE the opportunity to use FTSE’s expertise to design,
manage and distribute branded indices and index related products,
domestically and internationally.
2012: March 21: The NSE became a member of the Financial
Information Services Division (FISD) of the Software and
Information Industry Association (SIIA). August 8: The NSE entered
into a Memorandum of Understanding with The Somalia Stock
Exchange Investment Corporation (SSE), regarding the possibility of
co-operating to establish a securities exchange business involving
the trading, settlement, delivery of listed securities and other
stockbrokerage activities. September 5: The NSE Broker Back Office
commenced operations with a system capable of facilitating internet
trading improving the integrity of the Exchange trading systems
and facilitating easy access for the brokers. The entire process of
transacting in securities now had minimal manual intervention.
October 3: NSE together with FTSE International launched the
FTSE NSE Kenyan Shilling Government Bond Index. This was the
first instrument of its kind in Eastern Africa and gave investors the
opportunity to access current information and provided a reliable
indication of the Kenyan Government Bond market’s performance.
It followed the November 8, 2011 launch of the FTSE NSE Kenya 15
and FTSE NSE Kenya 25 Indices. December 14: UMEME Holdings
Limited cross listed on the Main Investment Market Segment (MIMS)
of the Nairobi Securities Exchange after a successful initial public
offer in Uganda. It was the first inward cross listing of an East
African company on the NSE since the incorporation of the East
African Securities Exchanges Association (EASEA) on May 15 2009.
December 10: Approval of the registration of nominated advisors
to the NSE Growth Enterprise Market Segment (GEMS).
2013: January 22: GEMS was launched. February 25: Centum
Investment Company became the first company in East Africa to
list an equity linked note, when its Kshs. 4.19 Billion Note Issue
commenced trading on the NSE FISMS. February 28: The Board of
The Association of Futures Market (AFM), admitted the NSE as an
associate member of the Association. The Association promotes
and encourages the establishment of new derivatives and related
markets. June 3: The NSE moved to its new residence outside
the central business district located on 55 Westlands Road - The
EXchange is a five storied building which has available office space
of about 30,000 square feet. June 25: The first reverse takeover
transaction in East Africa was completed when I&M Holdings began
trading on the NSE. A reverse takeover is where a private company’s
shareholders exchange their shares for those of a public company,
making the non-listed company a publicly-traded one. I&M Holdings
used the reverse takeover of City Trust which was listed on AIMS to
migrate the new firm to MIMS. June 26: Moody’s Investors Service
and the NSE hosted the inaugural East Africa Credit Risk Conference
in Nairobi. The conference included detailed presentations from
Moody’s analysts discussing credit risk topics and exploring
Moody’s methodological approach to rating Sovereign, Banking and
Corporate Finance issuers, complimented by a market overview
by the NSE. July 15: Home Afrika, a real estate company, made
history by being the first company to list by introduction on the
Growth Enterprise Market Segment (GEMS).August 8: The NSE and
the Shanghai Stock Exchange (SSE) entered into a Memorandum
of Understanding (MoU). The MoU outlined the Exchanges’ areas
for future collaboration that included training of human capital,
technology development, product development, mutual sharing of
information and undertaking joint research projects. It served as
the basis of the partnership with SSE to position the NSE to attract
more investment funds from Asia. August 19: CBA Capital Ltd and
Equity Investment Bank Ltd were admitted as trading participants
on The Exchange. September 24: As a result of its initiatives to
increase company listings and diversify asset classes, the panel
of distinguished judges for the 2013 Africa investor Index Series
Awards, ranked the NSE, the winner of the Most Innovative African
Stock Exchange category. The Index Series Awards is held annually
at the New York Stock Exchange, to profile African capital market
success stories and recognize Africa’s best performing stock
exchanges, listed companies, investment banks, research teams,
regulators, socially responsible companies and fund managers.
2014: April 7: The Deputy President of Kenya launches The
EXchange building, the new home of the NSE. June 26: NSE was
declared fully demutualization by the CMA.
Sources: (1) CMA
(2) NSE
(3) CDSC
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