[2008-09-03]  NSE to introduce Internet trading system
Investors at the Nairobi Stock Exchange (NSE) will soon buy and sell shares through the Internet.

Already, there is an attempt to integrate systems of both investment and commercial banks to facilitate speedy settlement of accounts once a client places an order.

The disclosure was made Tuesday by Mr Peterson Mwangi, the chief executive officer of Afrika Investment Bank during the official launch of the company at a Nairobi hotel.

"The process of integrating the Central Depository System and commercial banks is ongoing," said Mwangi.

demutualisation

The Government is also working with financial intermediaries as they automate their back office operations.

Vice-President Kalonzo Musyoka, disclosed that the Government will push through plans to undertake demutualisation (when a customer-owned mutual organisation or co-operative changes legal form to a joint stock company) of the NSE.

"This will ensure that the bourse moves from being an exclusive club for the elitist to a vehicle for economic growth," said Musyoka. He added that the Government would provide a facilitative environment to promote Internet trading, thereby increasing nationwide access to investment banking.

The official launch of Afrika Investment Bank into the market comes at a time when investor confidence is at its lowest, especially after the poorly handled Safaricom IPO refund.

However, the firm is upbeat the bourse will rebound, adding the Safaricom IPO provided vital lessons to stakeholders.

"Safaricom IPO was a big issue and presented logistical nightmares. There is no likelihood that this will be repeated," said Mwangi

Source: STANDARD