Background Information
In Kenya, listed shares and other securities are traded on the Nairobi Securities Exchange (NSE). The NSE
operates in conjunction with the Capital Markets Authority (CMA) and the Central Depository and
Settlement Corporation (CDSC).
The CMA is an independent government regulating agency responsible for supervising, licensing and
monitoring the activities of market intermediaries, including the stock exchange and the central depository
and settlement system and all the other persons licensed under the Capital Markets Act.
The CDSC provides clearing, settlement, depository and registry services for securities traded at the NSE. In
order to trade at the NSE, a person is required to open a CDS account with the CDSC.
Documents required for opening a CDS account:
- Two passport photographs (coloured)
- Original and Copy of ID/ Passport – (For investors outside Kenya, use notarised copy)
- Copy of PIN Certificate
- Copy of Utility Bill
- Correctly filled out CDS Account Opening Form (CDS 1) duly signed
- Original and copies of ID/Passport Copies for all directors
- Copy of PIN Certificates for directors and for the company
- Two passport photographs of each director (coloured)
- Copy of Certificate of Incorporation indicating Company Registration Number
- Correctly filled out CDS Account Opening Form duly sealed with company seal
- Memorandum and Articles of Association
- Resolution specifying persons authorized to act on behalf of the company
- Original and copies of ID/Passport Copies for all Proprietors
- Two passport photographs of each Proprietor (coloured)
- Copy of Business Registration Certificate
- Correctly filled out CDS Account Opening Form duly stamped
- Minutes from the group appointing the signatories
- ID/Passport Copies of all appointed signatories
- 2 passport photographs of each signatory (coloured)
- Copy of Registration Certificate
- Correctly filled out CDS Account Opening Form duly stamped
The Nairobi Securities Exchange
The NSE is a securities market which is licensed and regulated by the CMA. It provides a platform for the trading of listed securities. It is responsible for development of the securities market and regulating trading activities.
Securities traded at the NSE
- Equities
- Ordinary shares
- Preference shares
- Units in Real Estate Investment Trusts (REITs)
- Debt
- Treasury bonds
- Corporate bonds
- Infrastructure bonds
- Municipal bonds
- Debenture instruments
- Derivatives (Rollout ongoing)
Spots, swaps, options and futures trading of currency, equities, bonds, financial contracts and commodities
NSE Segments
- Main Investment Market Segment - MIMS
- Alternative Investment Market Segment - AIMS
- Fixed Income Securities Market Segment - FISMS
- Growth Enterprise Market Segment - GEMS
- Real Estate Investment Trusts Segment – REITS
- Futures and Options Market Segment – FOMS (Rollout ongoing)
Characteristics
- Potential for very high returns
- Highly risky due to market fluctuations
- Easy exit by disposal of stocks
Market
Suntra Investment Bank.
Investing in securities through Suntra Investment Bank:
- You can place orders via email
- You may remit money (to buy shares) via Mpesa
Buy quality. Buy low, sell high.