Nairobi Securities Exchange

Nairobi Securities Exchange
legal form	Private
founding	1954
Seat	Nairobi , Kenya
Website	www.nse.co.ke

The Nairobi Securities Exchange (NSE) , formerly known as the Nairobi Stock Exchange , is a securities exchange headquartered in Kenya's capital, Nairobi . With a market capitalization of 22.9 billion US dollars in 66 companies listed (July 2017) of the NSE is one of the largest stock exchanges in Africa.

history

Trading in company shares and stocks began in the 1920s. At that time the country was a British crown colony , which belonged to the British Empire . An exchange was first set up in 1922 at the Exchange Bar in the Stanley Hotel in Nairobi. However, the market was not formal as there were no rules and regulations governing stockbroking. The trade took place under a gentlemen's agreement . Standard commissions were invoiced when customers were obliged to comply with their contractual obligations for proper delivery and payment of the corresponding costs. At the time, stock market trading was a sideline for accountants, auctioneers, real estate agents and lawyers from the British minority. Since these entrepreneurs and officials were active in other specialist areas, there was no need for an association.

In 1951, a real estate agent named Francis Drummond founded the first professional stockbroking firm. He also turned to the Kenyan Finance Minister Sir Ernest Vasey and convinced him of the idea of setting up an exchange in East Africa . The two joined the London Stock Exchange in July 1953 and the London authorities agreed to help set up the Nairobi Stock Exchange as a foreign exchange. In 1954, the Nairobi Stock Exchange was founded as a voluntary association of stockbrokers. Since Africans and Asians were only allowed to trade in securities after gaining independence in 1963, trading in stocks was initially limited to the European community. At the beginning of independence, stock market activity collapsed due to uncertainty about the future of independent Kenya.

Several privatizations were carried out on the stock exchange in independent Kenya, including those of the Kenya Commercial Bank in 1987 and Kenya Airways in 1996. In July 2011, the Nairobi Stock Exchange Limited changed its name to Nairobi Securities Exchange Limited. The name change reflected the Nairobi Securities Exchange's strategic plan to evolve into a more complete securities exchange, enabling the trading, clearing and settlement of stocks, debt, derivatives and other related instruments.

Individual evidence

1. ↑ Statistics | The World Federation of Exchanges. Retrieved December 16, 2019 . 
2. ↑ Nairobian Editor: Shares were traded from this bar floor at The Sarova Stanley hotel. Retrieved December 16, 2019 . 
3. ^ History of NSE. Retrieved December 16, 2019 .