Capital Markets Industry Will Collaborate to Increase Product Adoption

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KBC_Facebook-728x90 "title =" KBC_Facebook-728x90 "/> </div> <p><strong> Capital Markets Industry agreed to work together in a joint strategy to improve adoption and registration products at the Nairobi Securities Exchange (NSE) The partnership brings together the National Treasury, the Capital Markets Authority (AMC), the NSE, the Central Depository and Settlement Corporation (CDSC) and the Fund Managers Association (FMA) , the Kenya Association of Stock Brokers and Investment Banks (KASIB), Authorized Market Intermediaries and the East African Venture Capital Association. </p> <p> In a joint statement Tuesday, the director General of the AMC, Mr. Paul Muthaura, MBS and NSE Chief Executive Officer, Mr. Geoffrey Odundo, confirmed that the capital markets industry is engaged in the common strategy to meet the national concerns about low costs and the overall adoption of the product, a situation that could be detrimental to the national development goals as a fulfillment of Kenya Vision 2030's aspirations. </p> <p> According to the Vision, the capital market has a key role in mobilizing savings through new products to finance important projects, including infrastructure development. <em> news </em> on your mobile as it happens. SMS & # 39; NEWS & # 39; to 22163 </span><br /></span></strong></p> </div> <p> M. Muthaura observed; "The CMMP has set itself a clear goal of achieving an annual score of 3 to 4 GEMS, but this goal has not been achieved despite the concerted efforts of the industry. New products have also been introduced with a low absorption rate. We have agreed to join together as an industry to develop a refined strategy with broad participation from all stakeholders to ensure that the listing proposal on NSEs and new capital markets is well designed to meet the expectations of issuers and investors. </p> <p> The industry's initiative follows a recent study conducted by the CMA in April-June 2018 on the low use of products and capital markets listings and the proposal of the NSE to implement a rapid mbad strategy. identified key factors leading to low product consumption, including; reluctance to implement innovative and unusual measures to attract large potential private and public issuers to the ESN rating; the perception that other regulatory hurdles outweigh the relatively lower cost of fund raising through the financial markets compared to bank lending rates; adverse macroeconomic environment; the lack of a simplified product development, launch and subscription strategy for new sophisticated products; emerging competition from other fast-performing investments such as real estate, mobile money products and bets; reputational risk exposure for potential issuers for post-offer correction / quotation following a professional valuation; and the lack of a clear plan of action for the clearing / restitution of bond investors whose funds have remained stuck in Chase and Imperial Banks, which has eased confidence especially in the corporate bond market. Odundo said: "The proposed Rapid Mbad Visibility Strategy aims to introduce an incubation board designed to attract entities with a visibility status that can have multiple benefits for stakeholders. It is expected that this board will host entities that require restructuring in financial, technical, operational, business, strategic, governance, environmental, legal, compliance, policy, procedural and other terms to transfer to the Accelerator Board. This visibility allows capital market stakeholders to engage with the hosted entity for mutually beneficial business purposes. "</p> <p> Some of the main recommendations of the workshop include: face-to-face meetings targeted with potential issuers of new products through the business incubator, to the experience in accelerator and listing topics; review of governance, integrity and transparency of product valuation, simplified customer journey and enhanced development strategy, launch and subscription of products, a rapid mbad visibility strategy to provide a pipeline for future equity listings and a structured and time-limited privatization program across Nairobi Securities (NSE). other topics of discussion include how to exploit the private capital space, the certainty of the applicability of tax incentives to industry and the role of licensed market intermediaries in the private sector. of the products </p> <p>. roundtables planned for the next quarter of 2018 to guide the implementation of unusual solutions to the challenge of low quotations and low product utilization in capital markets and the Authority will work closely with NSE and KASIB and other market players, refine these recommendations, which will be reviewed at a joint board meeting of the organizations and adopted. </p> </div> <p><script type= (function (d, s, id) { var js, fjs = d.getElementsByTagName (s) [0]; if (d.getElementById (id)) returns; js = d.createElement (s); js.id = id; js.src = "http://connect.facebook.net/en_US/sdk.js#xfbml=1&version=v2.5"; fjs.parentNode.insertBefore (js, fjs); } (document, 'script', 'facebook-jssdk')); [ad_2]
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