Capital Market Authority roles, regulations and contacts – Tuko.co.ke
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How well do you know the agencies in your country? Come to think of it, not so many people can tell what some government agencies and regulatory bodies do. One such body whose role remains unknown to many Kenyans is the Capital Market Authority (CMA). CMA is an independent public agency entrenched in Cap 485 A of the constitution and is established by an Act of parliament. It is an arm of the National Treasury and Planning and is meant to supervise, license and monitor capital market activities.
Capital Markets Authority is the national body charged with the responsibility of regulating and supervising the capital markets industry in Kenya. Formed on December 15, 1989, the agency has been functional under the treasury to oversee activities in the market including the central depository and settlement system, the stock exchange, and all other bodies and persons who are registered under the capital markets in the country.
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One of the core mandates is especially in providing regulation for the financial services by offering strategic guidelines on the number of resources to channel into different sectors. These include government bonds, equities, and other government-related securities in different ranges.
What is the role of Capital Market Authority? The authority’s regulatory functions include:
Understanding the obligations that the body is charged to do under the constitution clarifies the responsibilities of Capital Market Authority. It is of paramount importance that you as a citizen of Kenya are familiar with these roles since in one way you could need a service under their jurisdiction.
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Would you like to know how capital markets are regulated in Kenya? Well, just like any other constitutional body that is charged with a mandate to deliver some responsibilities, CMA conducts its regulatory activities through a regulatory framework that’s crafted within the confines and provisions of the constitution.
The authority through its board of directors and supported by the management and the chief executive undertakes all the roles as charged by the constitution of Kenya.
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Since its inception, the authority has operated within the provided constitutional framework and guides all stakeholders on compliance. The activities of the body are reflected in the way it conducts its research, develops a regulatory process and creates a level playing field where all players including institutions and other key parties work in fairness and orderliness. The authority regulatory framework comprises of:
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The authority has developed guidelines that are used for the supervision and management of capital markets and the intermediaries involved. Here are some of the guidelines:
These regulations and the rules set for markets are practical and ensure maximum practicality in execution. They are meant to provide smooth supervision and management of capital stocks towards an economically sound country.
Licensees refer to the bodies and agencies that rely on the CMA regulations and provisions to conduct business in Kenya. The authority licenses the following categories of markets players:
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The role of Capital Market Authority in economic development in Kenya is not limited to only regulation and licensing. Without the authority, the market would be imbalanced as any player would set the rules and do a hostile takeover.
With the body in place, one can be sure of the regulations and guidelines that govern how Nairobi stocks exchange operates. From the licensing, the government earns revenue which in turn is returned in the form of employing regulators and developing the necessary infrastructure to support capital market activities.
The authority has its members who ensure its operations are successful. They consist of:
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Who is the chairman of the Capital Markets Authority? Well, the present composition is as follows:
These members are responsible for ensuring that the objectives of Capital Market Authority are realized within their tenure of office. If interested in information on their backgrounds or their term in office, you can search them individually or visit the CMA website.
The objectives of CMA as provided for in the constitution are as follows:
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If you visit the CMA resource centre portal, you will find multiple services and resources that are offered under the authority. You can also sign up as a member and participate in the capital markets of Kenya directly.
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CMA is located in Kenya and has its offices in Nairobi. You can contact them through the following contact details:
Kenya is a country that operates through different institutions and agencies to ensure all are catered for and that it benefits the country. One such body is the Capital Market Authority which has been in existence since 1989. It is charged with the primary role of regulating and creating a level playing field for all interested parties. So far, the body has demonstrated its capacity to ensure compliance with the set regulations and drive the stock exchange market among others to great success. It also has different capital markets statistics and issuers who work together with the authority to provide services to interested parties and bodies.
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Source: TUKO.co.ke
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