NSE Listing Requirements

February 29, 2024

4 minutes

BUSINESS

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Requirement	Main Investment Market Segment (MIMS)	Alternative Investment Market Segment (AIMS)	Fixed Income Market Segment (FISMS)
Incorporation status	The issuer must be a public company limited by shares and registered under the Companies Act (Cap 486)	The issuer must be a public company limited by shares and registered under the Companies Act (Cap 486)	The issuer must be a public company limited by shares and registered under the Companies Act (Cap 486) or any other corporate body.
Share Capital	The minimum authorized, issued and fully paid up capital must be Kshs. 50 Million.	The minimum authorized, issued and fully paid capital should be Kshs.20 Million	The minimum authorized, issued and fully paid up capital must be Kshs. 50 Million
Net Assets	The net assets should not be less than Kshs. 100 Million immediately before the public offer.	Net assets immediately before the public offer should not be less than Kshs.20 Million	The net assets should not be less than Kshs. 100 Million immediately before the offer.
Transferability of shares	The shares to be listed shall be freely transferable.	The shares to be listed shall be freely transferable.	May or may not be transferable.
Financial records.	The audited financial statements of the issuer for five preceding years be availed.	The audited financial statements of the issuer for three preceding years be availed.	The audited financial statements of the issuer for three preceding years be availed (except for the government)
Directors and Management	The directors of the issuer must be competent persons without any legal encumbrances.	The directors of the issuer must be competent persons without any legal encumbrances.	The directors of the issuer must be competent persons without any legal encumbrances
Track record	The issuer must have declared positive profits after tax attributable to shareholders in at least three years within five years prior to application.	The issuer must have been operating on the same line of business for at least two years one of which it must have made profit with good growth potential.	Not a requirement.
Solvency	The issuer should be solvent and have adequate working capital.	The issuer should be solvent and have adequate working capital.	Not a requirement
Share ownership structure	At least 25% of the shares must be held by not less than 1000 shareholders excluding employees of the issuer.	At least 20% of the shares must be held by not less than 100 shareholders excluding employees of the issuer or family members of the controlling shareholders.	Not a requirement
Certificate of comfort	May be required from the primary regulator of the issuer if there is one.	May be required from the primary regulator of the issuer if there is one.	May be required from the primary regulator of the issuer if there is one.
Dividend policy	The issuer must have a clear future dividend policy	The issuer must have a clear future dividend policy	Not a requirement
Debt ratios	Not a requirement	Not a requirement	Major ratios: Total indebtedness including the new issue not to exceed 400% of the company’s net worth as at the latest balance sheet. The funds from operations to total debt for the three trading periods preceding the issue to be kept at a weighted average of at least 40%. A range of other ratios to be certified by the issuer’s external auditors.
Issue lots	Not a requirement	Not a requirement	Minimum issue lot size shall be: Kshs. 100,000 for corporate bonds or preference shares Kshs. 1,000,000 for commercial paper programme.
Renewal date	Not a requirement	Not a requirement	Every issuer of commercial paper to apply for renewal at least three months before the expiry of the approved period of twelve months from the date of approval.

Requirement

Main Investment Market Segment (MIMS)

Alternative Investment Market Segment (AIMS)

Fixed Income Market Segment (FISMS)

Incorporation status

The issuer must be a public company limited by shares and registered under the Companies Act (Cap 486)

The issuer must be a public company limited by shares and registered under the Companies Act (Cap 486) or any other corporate body.

Share Capital

The minimum authorized, issued and fully paid up capital must be Kshs. 50 Million.

The minimum authorized, issued and fully paid capital should be Kshs.20 Million

The minimum authorized, issued and fully paid up capital must be Kshs. 50 Million

Net Assets

The net assets should not be less than Kshs. 100 Million immediately before the public offer.

Net assets immediately before the public offer should not be less than Kshs.20 Million

The net assets should not be less than Kshs. 100 Million immediately before the offer.

Transferability of shares

The shares to be listed shall be freely transferable.

May or may not be transferable.

Financial records.

The audited financial statements of the issuer for five preceding years be availed.

The audited financial statements of the issuer for three preceding years be availed.

The audited financial statements of the issuer for three preceding years be availed (except for the government)

Directors and Management

The directors of the issuer must be competent persons without any legal encumbrances.

The directors of the issuer must be competent persons without any legal encumbrances

Track record

The issuer must have declared positive profits after tax attributable to shareholders in at least three years within five years prior to application.

The issuer must have been operating on the same line of business for at least two years one of which it must have made profit with good growth potential.

Not a requirement.

Solvency

The issuer should be solvent and have adequate working capital.

Not a requirement

Share ownership structure

At least 25% of the shares must be held by not less than 1000 shareholders excluding employees of the issuer.

At least 20% of the shares must be held by not less than 100 shareholders excluding employees of the issuer or family members of the controlling shareholders.

Not a requirement

Certificate of comfort

May be required from the primary regulator of the issuer if there is one.

Dividend policy

The issuer must have a clear future dividend policy

Not a requirement

Debt ratios

Not a requirement

Major ratios: Total indebtedness including the new issue not to exceed 400% of the company’s net worth as at the latest balance sheet. The funds from operations to total debt for the three trading periods preceding the issue to be kept at a weighted average of at least 40%. A range of other ratios to be certified by the issuer’s external auditors.

Issue lots

Not a requirement

Minimum issue lot size shall be: Kshs. 100,000 for corporate bonds or preference shares Kshs. 1,000,000 for commercial paper programme.

Renewal date

Not a requirement

Every issuer of commercial paper to apply for renewal at least three months before the expiry of the approved period of twelve months from the date of approval.