CMA Chairman Kung’u Gatabaki said the plan will enhance fair participation and avoid control of the stock market by a few individuals or companies/FILE
CMA Chairman Kung’u Gatabaki said the plan will enhance fair participation and avoid control of the stock market by a few individuals or companies.
Gatabaki said the strategic plan will also focus on ensuring that Kenyans invest in firms which have adhered to laid regulations and avoid cases where they end up losing their money after the firms collapse.
“In the past we have had several security brokers collapse and people started asking where CMA was. This is because they (brokerage firms) operated themselves without proper regulations and that is why we had such cases. What we are saying now is that it will not happen again,” Gatabaki affirmed.
He maintained that the authority will not fear taking any disciplinary action especially against directors of listed firms who go against the laid down market laws.
“We will overhaul the legal and regulatory framework for securities markets to make it more robust and facilitative to promote market development and innovation,” Gatabaki said.
“There have been concerns that we are trying to over regulate the market by coming up with too much regulations. But the whole idea is to make sure we have efficiency,” he reiterated.
In June this year, CMA through the Treasury proposed the Capital Markets (Amendment) Bill 2013 which aims at giving powers to the authority to among others, oversee private share offers.
Private offers involve selling securities to a number of investors, individuals a process that does not currently require approval from the regulator.
CMA is also looking forward to see more small companies list at the Nairobi Securities Exchange (NSE) especially under the Growth Enterprise Market segment.
