CMA licenses new Authorised Securities Dealer and Authorised Depositories
Nairobi, 15 May 2019…The Board of the Capital Markets Authority (CMA) has approved the grant of a license to SBM Bank Kenya Limited to operate as an Authorised Depository and an Authorised Securities Dealer. Credit Bank Limited has been granted a license as an Authorized Depository. This brings the number of Authorised Securities Dealers to three and Authorised Depositories to twenty.
An authorized securities dealer carries out the business of buying, selling, dealing, trading, underwriting or retailing of fixed income securities. According to the Capital Markets Act, an authorized securities dealer is a person authorized to deal in securities and operate in a specified market segment as may be prescribed by the Authority.
BACKROUND INFORMATION ON THE CAPITAL MARKETS AUTHORITY
The Capital Markets Authority (CMA) was set up in 1989 as a statutory agency under the Capital Markets Act Cap 485A. It is charged with the prime responsibility of both regulating and developing an orderly, fair and efficient capital markets in Kenya with the view to promoting market integrity and investor confidence.
The regulatory functions of the Authority as provided by the Act and the regulations include; Licensing and supervising all the capital market intermediaries; Ensuring compliance with the legal and regulatory framework by all market participants; Regulating public offers of securities, such as equities and bonds & the issuance of other capital market products such as collective investment schemes; Promoting market development through research on new products and services; Reviewing the legal framework to respond to market dynamics; Promoting investor education and public awareness; and Protecting investors’ interest.