Monday, May 26, 2008

CMA's proposed revolution @ the NSE

  1. Capitalisation- Good idea
  2. Regular reporting- Interim and annual accounts should be audited. NSE has Kenyans abroad who invest there, hence quarterly, interim and annual reports should also be published online on the broker’s websites.
  3. Separation of ownership from day to day business operations: Not sure how this is going to work in practice because without day surveillance, its possible for the CEO to act as a messenger for the owners.
  4. Limiting ownership to 25% for each broker/ibank: How will you be able to ensure that proxies don't hold ownership on behalf of original owners?
  5. Fitness and propriety: How come there is no mention of required standards for staff working for the brokers/ibanks? For example, there should be minimum qualifications for dealers etc.
  6. Tied agents: The requirement that an agent can only act for one stockbroker is retrogressive especially if we are moving to a situation where retail investors will be unable to access the brokers directly
  7. Insurance indemnity: Good idea.
  8. OTC for shares: When if ever do you intend to introduce over-the-counter trading in SME shares? Kenyans want to invest in shares and as Safaricom IPO shows, the apetite is there. Why not introduce OTC for companies such as CooP, KPA KPL, New KCC, NSE, TC and others that intend to come to the market at some point?
  9. Commodities: Again why no introduction or clear regulations of this market?
  10. REITS: Kenya needs REITS like a man in a desert. Why know basic guidelines?

No comments: