By James Anyanzwa
The Capital Markets Authority (CMA) has amended the relevant legal framework to allow for the sharing of information with other regulatory bodies and the demutualisation of the Nairobi Stock Exchange (NSE).
The latest development will see the authority exchange information on financial systems, management and investigations of cross-sector regulated entities with the Central Bank of Kenya (CBK), Insurance Regulatory Authority (IRA), and the Retirement Benefits Authority (RBA).
The regulators are also expected to strengthen collaboration by undertaking various joint activities in respect of the licensing and supervision of regulated entities, and work together in strengthening consumer protection and financial literacy.
In a statement yesterday, the CMA said it had modified the CMA Act Cap 485 to allow the Authority share information with other regulators in order to strengthen their regulatory oversight. The amendment would also facilitate demutualisation of the NSE, by separating ownership and trading rights within 3 years of the passage of the proposed amendment.
The NSE will be required to convert to a limited liability company, and reconstitute its board of directors in a manner prescribed by the Authority.
The adjustments are part of the amendments proposed by Finance Minister, Uhuru Kenyatta, in his 2010/11 budget speech aimed at supporting growth of the local capital markets. Other proposals and amendments likely to impact the capital markets industry include development of an institutional and legal framework to introduce commodities futures exchange, full implementation of the EAC Common market protocol, which comes into effect this week, and the reduction of stamp duty on mortgages, charges and debentures by 50 per cent from 0.2 per cent to 0.1 per cent.
Source: The Standard | Online Edition
0 comments:
Post a Comment