This archive report was first published on 11 September 2019.
Published on September 11, 2019, the Nairobi Securities Exchange (NSE) has been recording its worst performance in almost a decade, with over a dozen listed firms announcing profit warnings in the past financial year.
The Capital Markets Authority (CMA) and the NSE have announced plans to establish a Recovery Board to monitor the performance of troubled firms and protect investors in case of bankruptcy.
According to CMA, the Recovery Board will allow companies to develop and implement recovery plans, ensuring transparency to the investing public on the status of the entity.
Companies listed with the recovery board will have six months to submit a restructuring plan to the CMA, or risk being delisted. Failure to report on the progress of the restructuring plan or lack of progress within a three-year period will also lead to delisting.
NSE Chief Executive Geoffrey Odundo attributed the decline in trading at the bourse to foreign investors shifting their focus to domestic markets and waning confidence in the equities market.
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