ADVOKS GLOBAL · KENYA
The Capital Markets (Public Offers, Listings and Disclosures) Regulations, 2023
77. Recovery list
Edition: 2023-12-15 · In force
77. Recovery list
(1)A securities exchange may place an issuer on the recovery list on the direction or approval of the Authority if the issuer fails to meet any of the continuing listing obligations or for any other reason which, in the opinion of the Authority, is likely to prejudice the interests of the investors or market integrity.(2)The issuer placed on the recovery list under subregulation (1) shall have the right to be heard by the Authority and securities exchange on which it is listed before being placed on the recovery list.(3)On the depletion of shareholder funds resulting in a net liability position for the third and subsequent consecutive financial year based on audited full-year consolidated financial statements, an issuer shall be required to announce the fact through its website and in at least one newspaper with national circulation and provide the information prescribed by the Authority.(4)Subregulation (3) shall not apply to an issuer that has been placed on the recovery list.(5)If an issuer is placed on the recovery list, it shall—(a)immediately announce the fact through its website and in a daily newspaper with nationwide circulation;(b)within the prescribed time after being placed on the recovery list, provide a restructuring plan approved by its members to the Authority and the securities exchange on which it is listed;(c)implement the restructuring plan within the prescribed time following the submission to the Authority and securities exchange; and(d)for the period during which it remains on the recovery list, provide the market, including the Authority and securities exchange on which it is listed, with an update once in every three months on its efforts and progress made in meeting the exit criteria of the recovery list, including its financial situation, future direction, level of compliance with the continuing obligations or other material development that may have a significant impact on its compliance position:Provided that if any material development occurs between one update and the next, the issuer shall immediately announce that development in the manner prescribed in paragraph (a).(6)An issuer on the recovery list may apply to the Authority to be removed from the recovery list if it complies with net assets and solvency requirements or such other requirements as may have been imposed by the Authority.(7)An issuer that fails to meet the requirements of sub regulation (4) within twenty-four months after the date on which it was placed on the recovery list, the securities exchange may—(b)suspend trading of the listed securities of the issuer with a view to de listing the issuer.(8)During the period an issuer remains on the recovery list, trading in its securities shall continue, unless a trading halt or a suspension is, or has been, effected.