Part two illuminates the capital markets authoritys enforcement toolkit. Nic group plc shareholders approve merger with cba 17. It has been issued with the approval of the capital markets authority pursuant to the capital markets securities public offers, listing and disclosures regulations, 2002 as amended. Central bank of kenya, capital markets authority and competition authority. The precursor of government regulation was the capital issues committee established in 1971. Last week, the national bank and kcb merger deal received the final approval from the central bank of kenya and the capital markets authority paving way for the merger of the two banks. The capital markets authority of kenya, also capital markets authority cma, is an independent government financial regulatory agency responsible for supervising, licensing and monitoring the activities of market intermediaries, including the stock exchange, and the central depository and settlement system and all the other persons licensed under the capital markets act of kenya. Sectorspecific regulators in kenya include the communications authority, the insurance regulatory authority, the energy regulatory commission and the central bank of kenya.
The capital markets act the cm act establishes the capital markets authority the. Nic group plc shareholders approve merger with cba 17th april 2019 ni group pl. The national treasury nairobi securities exchange cdsc iosco central bank of kenya retirement benefits authority insurance regulatory authority. Capital markets authority to regulate sale of coffee in kenya. Find out what you need to do to secure your investment today. Exchange and the capital markets authority cma annual reports. Ugandas central bank cuts rate by another 100 bps, to buy treasury bonds. Kenya s capital markets authority is proposing exemptions for companies that werent fully tax compliant in the past with the view to increasing listings on the nairobi securities exchange. Market regulations nairobi securities exchange nse kenya. The business rationale for the transaction including strategic, commercial and economic reasons. This paper examines kenyas securities markets regulatory and enforcement. The last regulatory hurdle to the merger was cleared today with the approval of the central bank of kenya and the bank of tanzania, a regional regulator.
The competition authority of kenya has approved the proposed merger between commercial. Kenolkobil has now appointed two new directors to its board, mr christian cochet and mr gilles kauffeisen both with vast in. Capital markets authority for the purpose of promoting and facilitating the. Regulators approve merger creating africas largest bank. The deal, fronted by mauritianowned financial services, axys group, is subject to regulatory approvals from the capital markets authority and competition authority of kenya. An act of parliament to establish a capital markets authority for the purpose of promoting, regulating and facilitating the development of an orderly, fair and efficient capital market in kenya and for. Capital markets act the capital markets act cap 485a of the laws of kenya. Aib capital ltd will ensure that you invest in the right places, in the right instance that will see your investments bear fruit.
This is your home for all the concerns and questions you may have regarding capital markets operations in kenya. Capital markets takeovers and mergers regulations, 2002. Capital markets authority nairobi securities exchange nse. Cba commercial bank of africa limited, a limited liability company incorporated in kenya with registration number c.
Kenya s capital markets authority and the competition authority of kenya have also approved, allowing shares of the merged entity to commence trading on the nairobi securities exchange on july 17. Capital markets authority cma soundness report is a publication of the capital markets. The ownership structure and control before and after the transaction. The proposed transaction is the acquisition of the issued share capital in cba in exchange for. Authority, capital markets authority, central bank of kenya, etc.
Brokers apex, aib capital eye bigger deals with merger. These regulations govern the procedure and timing of takeovers and mergers and. Kenya central bank cuts key rate 50 bps after interest rate cap is scrapped. It also aims to introduce the accurate information and instructions in addition to the capital market s rules and regulations which enables investors to. Authority means the capital markets authority established by section 5 inserted by the. Regulations capital markets and securities authority. Cak the competition authority of kenya established under section 7 of the competition act. Wiseman talent ventures v capital markets authority 2019 eklr the respondent deponed it is a statutory body established under section 51 of the capital markets authority act. The capital markets authority is the government regulator charged with licensing and regulating the capital markets in kenya.
Evaluating the legal framework governing mergers and. Kenyas debt levels likely to significantly rise in 2019. In kenya mergers and acquisitions occurs in different sectors in the economy. Brokerage houses apex africa capital and aib capital have entered into an agreement to merge operations, the two firms announced in a statement on thursday. An act of parliament to establish a capital markets authority for the purpose of promoting. The role and impact of capital markets in developing.
The capital market authority s board of commissioners has issued its resolution to adopt the updated merger and acquisition regulations, thereby replacing the previously implemented merger and acquisition regulations, which was adopted in 2007. The capital markets takeovers and mergers regulations, 2012. Why plan to merge financial service regulators is good for kenya. Announcement regarding issuance of disciplinary board resolution. Plans to merge the capital markets authority cma, the insurance regulatory authority ira, the retirement benefits authority. If the threshold for acceptance is not met then the offer fails but if it is met it is deemed successful, it stated. From 1954 to 1971, the nairobi securities exchange was responsible for all regulatory aspects of the securities markets. Nic group plc and nic bank kenya plc 1st february, 2019 nairobi, kenya disclaimer.
Regulating kenyas securities markets international journal of. This announcement is for information purposes only. Kenya coffee trading in kenya will now be regulated by the capital markets authority cma as the treasury moves to tame cartels, who have been blamed for diminishing earnings by farmers draft regulations published by treasury secretary ukur yatani state that coffee trading companies as well as the weekly commodity auction will now be regulated under the capital markets act a. Capital markets authority cma jobs in kenya april 2020. The capital markets authority was established in 1989 through an act cap 485a,laws of kenya passed by the parliament of kenya. The pair of kenolkobil and gulf energy have retained all of their staff members after the merger of business operations in late 2019. Kenya capitalmarkets regulator plans waivers to spur. Capital markets authority announces reporting suspected crime to. General electric ge on matters relating to compliance with the capital markets authority for ge to offer financial advisory services. Cma government of kenya, the capital markets act ca government of kenya, the competition act cak competition authority of kenya cbk central bank of kenya cca east african community competition authority ccc comesa competition commission comesa common market for east and south african states eac east african community. Upon completion, the nairobi securities exchangense will receive an application from the capital markets authority cma effectively delisting kenolkobil. Aim alternative investment market cma capital markets authority fism fixed income. Licensing and supervising all the capital market intermediaries.
Comparisons were made between the mean of 3 years pre merger acquisition and 3. All undertakings to a merger are required to notify the authority of their proposal in writing. Temporary library assistant at capital markets authority cma the capital markets authority is a statutory agency charged with the responsibility of regulating and developing an efficient capital market in kenya. The motive of the government was to encourage the private sector in the national economy. The capital markets take overs and mergers regulations, 2002. Capital markets authority ceo paul muthaura breaks down the 5 year strategic plan after launch duration. Wiseman talent ventures v capital markets authority 2019. Kcbnbk merger in hands of shareholders, says regulator. The government of kenya started thinking about the reformation of the economic policies of the country. Nic group plc nic, a publiclylisted nontrading company licensed by the central bank of kenya, in a shareswap merger transaction with.
The approval would see nic and cba merge their operations and amalgamate the shareholding through which the shareholders of cba would become 53 percent shareholders of nic, upon regulatory approval by cbk, capital markets authority and competitions authority, in a process expected to be concluded in the third quarter of this year 2019. In the letter, the board also pointed out that the offer had undervalued nbk by almost 38 percent, according to an independent evaluation. Under sections 5 and 101 of the capital markets authority act cap. Acting for abraaj capital, a private equity firm managing over usd 5 billion and operating in numerous growth markets globally, on their purchase of aureos frontier, a mauritiandomiciled, private equity fund indirectly owned by european governments, including obtaining regulatory consents from the competition authority of kenya and the kenya. Capital markets authority approves kenya s first green bond. The decision came after the cabinet had approved the draft financial services authority bill 2016, which was designed to merge the functions of the capital markets authority cma, retirement benefits authority rba, insurance regulatory authority ira and saccos societies regulatory authority sasra in order to save on operational costs and improve efficiency in the regulation of kenya. The capital markets securities lending, borrowing and shortselling regulations, 2017 the capital markets securities lending borrowing and shortselling regulations 2017.
These regulations regulate and govern mergers and acquisitions. Post merger, the market share of merged entity will be 10. It is then up to the nbk shareholders to accept or reject the offer. The regulatory functions of the authority as provided by the act and the regulations include. Market regulator, capital markets authority said success or failure of the takeover is fully dependent on the shareholders of both kcb and nbk. There mergers that are sector specific such as banking, insurance and telecommunications and are regulated by respective laws. Olivarescaminal, some issues on crossborder stock exchange mergers, 29 u. Our scope of worked entailed obtaining approval from the central bank of kenya, the capital markets authority, ensuring there were no objections from the central banks of the other four countries, publishing a circular for shareholders and holding an agm. Inside kcbnbk merger deal why mps and treasury are. We provide various reports that detail the current trends in the financial markets. The capital market authority strives to raise the level of investor awareness in the community by emphasizing the importance of knowing the best practices to safely invest in capital markets. Cmait012020 regarding the project of the enterprise resource. An act of parliament to establish a capital markets authority for the purpose of. In early august, the capital markets authority said that the acquisition offer would go through if it was accepted by two thirds of national banks shareholders.
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