The Nairobi Securities Exchange has been granted approval by the markets regulator to launch the Unquoted Securities Platform (USP), an Over the counter (OTC) platform that offers unlisted companies access to long term funding through private placements. The platform will allow trading, clearing, and settlement of securities of unquoted companies.
The exchange says the Unquoted Securities Platform will allow unquoted companies with a register of shareholders to enjoy price discovery and boost their stocks’ liquidity. Further, it will enable investors to view their stocks’ prices, which will be published daily.
READ ALSO: Why SMEs have given the NSE a Wide Berth
Investors will also access over the counter trading for securities of unlisted companies.
NSE CEO Geoffrey Odundo says the launch is part of the bourse’s strategic plan, including connecting capital with opportunities.
“The launch offers unlisted firms an opportunity to raise capital, expand and list on the respective segments at the Exchange.”NSE CEO Geoffrey Odundo
Investors interested in trading via the Unquoted Securities Platform will open and maintain a USP trading account and buy and sell USP securities via a USP securities dealer.
Unquoted Securities Platform Part of Efforts to Woo Companies on the NSE
The launch of the Unquoted Securities Platform is part of the exchange’s efforts to woo companies to the NSE. The platform offers a saving grace for companies yet to meet listing requirements to access funds.
The launch follows other efforts to rope in companies, such as the Ibuka Programme, which seeks to attract SMEs to list on the bourse.
Meanwhile, the Capital Markets Authority is reviewing existing listing laws, which will be ready by June 2021.
ALSO READ; Kenya Drafting rules to control OTC Market