Two firms have been delisted from the Nairobi Securities Exchange (NSE) after failing to adhere to regulatory requirements.

Delisting is the process in which a listed company is removed from the securities exchange on which it trades its share.

The firms, Baumann Ltd and Hutchings Biemer Ltd, were delisted effective Thursday, the NSE said in a statement on Thursday.

While Baumann was suspended from trading in 2008, Hutchings Biemer operations at the bourse were halted in 2001 to allow them to comply.
Once delisted, according to NSE CEO Geoffrey Odundo, the shares cease to be traded on the market though the companies remain public entities, but will not be subject to the regulatory regime of the NSE and the Capital Markets Authority.

Two types of delisting exist, the first is voluntary and the second regulatory. Voluntary involves withdrawal of a firm from the bourse with the approval from shareholders, after complying with relevant regulatory requirements.

On the other hand, regulatory delisting involves removal from the market by the NSE itself for non-compliance with the capital markets laws and regulations.

About 66 companies are listed at the NSE, which has a daily trading volume of about 10 million U.S. dollars and a market capitalization of 24 billion dollars. Enditem

Source: Xinhua/NewsGhana.com.gh

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