Businesses listed on the Nairobi Securities Exchange (NSE) are now required to submit forward-looking calendars of corporate events, outlining all upcoming events and their provisional dates.

This is in line with new regulations introduced by the NSE and the Capital Markets Authority (CMA) to enhance investor trust and promote market efficiency.

The move aims to improve transparency and strengthen communication between companies and investors. “This approach ensures that the market is provided with the most accurate and up-to-date details,” the circular noted.

Listed companies are expected to submit their event calendars for the remainder of 2024 by September 16th, and calendars for 2025 by January 10th, 2025. These should be published on company websites and other communication platforms.

Fostering transparency

This directive comes shortly after concerns were raised by the Central Bank of Kenya (CBK) regarding illegal dealings in the bond markets. The CBK had called on the CMA to investigate bond trades involving brokers, market players, and the National Social Security Fund (NSSF).

According to CMA and NSE, the introduction of event calendars aims to foster transparency, efficiency, predictability, and market stability.

“The goal is to give investors a clearer understanding of forthcoming corporate actions, allowing them to make informed decisions and contributing to greater market stability,” stated the circular.

Mihr Thakkar, an expert in the field, noted that the development reflects pressure from investors who have been calling for more transparency. He added that forward-looking calendars enhance market efficiency by giving investors a clear timeline for events, enabling them to anticipate and adjust accordingly.

“For instance, if results are expected by March 2025, investors may begin buying shares in anticipation. If they expect favorable results, share prices may rally ahead of the date, allowing them to adjust their positions based on the outcome,” Thakkar explained.