Explain how the Capital Authority can ensure:
(i) Faster growth and development of the Nairobi Stock Exchange or Stock Exchange in your country
(ii) Development of other stock exchanges in Kenya or in your country.
ANSWER
i)
1. Establishes Rules & Regulations for private placement of securities
2. Protects investors from financial losses
3. Removal for impendment and creation of incentives for long term investment. of investors.
4. Facilitate National wide system of Brokerage services
ii)
• Creation maintenance and regulation market for securities.
• Creation for environment which will encourage local companies go public.
• Removal of Barriers to security transfers
• Encourage Development of International Investors – eg insurance and premium co’s
• Introduces wider range of Investments in the market
• Decentralize operations of market to Rural Areas.
• Provide adequate information to players in market for efficient pricing of securities.