Central Depositories Act

59D. Revocation of a licence

Edition: 2023-12-11 · In force

59D. Revocation of a licence

(1)The Authority may, by notice in writing, revoke a licence granted to a central depository under this Act if a central depository—

(a)ceases to operate the clearing facility that it had been licensed to operate;

(b)is being wound up;

(c)fails to comply with any requirement of this Act;

(d)fails to comply with a direction of the Authority;

(e)fails to provide the Authority with information when required to do so;

(f)provides false or misleading information;

(g)is operating in a manner that is detrimental to the public interest; or

(h)requests the Authority to do so.

(2)For the purposes of subsection (1), a central depository shall be considered to have ceased operation if it has not operated its central depository facility for more than thirty days without the prior approval of the Authority.

(3)The Authority may permit a central depository to, on or after the date on which the revocation is to take effect, continue its operations or carry on such activities affected by the revocation as the Authority may specify for the purpose of—

(a)winding up its operations; or

(b)protecting the interest of the public.

(4)The Authority shall not, except where responding to a request under subsection (1)(h), revoke a central depository licence without first giving the central depository an opportunity to be heard.

(5)The Authority shall publish in the Gazette any licence revoked under this section.[Act No. 38 of 2011, s. 14.]

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Source: Kenya Law