CMA bars ailing companies from share buybacks

nairobi securities exchange bourse
[Image source: Riccardo Gangale | Bloomberg]


Business Daily | by Constant Munda


The Capital Markets Authority (CMA) has barred listed firms with negative equity from rolling out share buybacks, locking out cash-strapped companies from the process largely applied to correct perceived undervaluation of stock.

The regulator has ruled that directors of the companies which intend to repurchase stock from the market should ensure “assets … are equal to or exceed the liabilities of the listed company”…

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