APPROVAL OF EABX PUBLIC COMPANY LIMITED AS AN OVER-THECOUNTER SECURITIES EXCHANGE AND RECOGNITION AS A SELF REGULATORY ORGANIZATION
The Capital Markets Authority has granted approval to EABX Public Company Limited to operate as an Over The Counter Securities Exchange and recognized it as a Self-Regulatory Organization (SRO).
The approval is granted after compliance with Section 20 of the Capital Markets
Act as read with Regulation 3 to 13 of the Capital Markets (Licensing Requirements) (General Regulations), 2002 and Section 18B of the Capital Markets Act, respectively.
An OTC is a market where traders interact to negotiate their transactions as opposed to what happens in a formal securities exchange. It involves bilateral negotiations and trading through dealer networks. Modern OTC markets do not have physical location but all trades occur electronically and directly between two parties in a decentralized market.
An SRO is an entity that is organized for the purpose of regulating the operations and the standards of practice and business conduct of its members and their representatives with a view to promoting the protection of investors and the public interest.
BACKGROUND 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.
CMA also regulates the commodity markets and online forex trading. 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. For more information, please contact: Antony Mwangi, Manager Corporate Affairs & International Relations on email@example.com