Chief executives of the three East African stock markets have agreed to fast track the program to allow mass cross listing of securities beginning next month.

A statement issued at end of a regional meeting held in Nairobi resolved to kick off the exercise with a comprehensive education and awareness campaign with the approval process expected to be completed by the end of September.

They said the mass cross listing is expected to culminate in the formation of a unified east African regional stock exchange and provide the environment for a financial free zone. The chief executives said companies must be listed on the main investment market segment and meet the eligibility criteria of the respective exchange where they intend to cross list.

To accelerate the process, the cost of transaction advisors, approval and listing fees will be scaled down.

The chief executives have also agreed to accept the submission of the latest annual or interim accounts submitted to the home exchange as the latest financial statements.

The completion of the exercise will enable citizens of the three east African countries to own shares across the borders and also increase opportunities for cross-listed companies to expand their capital outlay.

The meeting was chaired by the Chief Executive of the Nairobi Stock Exchange (NSE) Chris Mwebesa, while Simon Rutega and Jonathan Njau represented Uganda and Tanzania respectively.

Rutega said time has come for stock exchanges to ensure sustainable economic growth and development in the region.

"Companies wishing to list in neighboring countries will be given a 'window for cross listing' from July 3, 2006 and September 1, 2006 to submit their applications, by which time all the constraints and challenges involving mass cross listing will have been addressed," he said.

Rutega, who is also the chairman of the Association of Stock Exchanges in East Africa, said Uganda, Tanzania and Kenya are committed to integrating their stock exchanges to achieve this objective.

NSE Chairman Mirebeau Da Gama Rose called for provision of incentives for companies to be cross listed on the 3 stock exchanges in the region.

The objective of the meeting was to encourage more of the 49 companies listed in the Nairobi Stock Exchange's main investment market segment to list in Uganda and Tanzania, because they meet the eligibility criteria in the two markets.

Source: Xinhua