ADVOKS GLOBAL · KENYA
Prevention of Fraud (Investments) Act
5. Regulation of new issues
Edition: 2023-12-11 · Not commenced
5. Regulation of new issues
(1)No local company shall issue, and no statutory corporation shall issue in Kenya, any prospectus unless the issue of the securities to which such prospectus relates has been approved by the Committee.(2)The Committee may refuse to grant approval of the issue of any securities or of any rights or offers by a local company or statutory corporation, or may make such issue subject to such conditions as the committee may deem necessary in the public interest.(3)Any applicant for approval under this section who is aggrieved by a decision of the Committee under subsection (2) of this section may, within fourteen days of the receipt of written notification of that decision, appeal to the Minister therefrom, and the decision of the Minister on any such appeal shall be final.(4)Any local company or statutory corporation which contravenes the provisions of subsection (1) of this section, or fails to comply with any condition imposed under subsection (2) of this section, shall be guilty of an offence.(5)Notwithstanding the provisions of any other written law, in any criminal proceedings under this section, a certificate purporting to be signed by the secretary to the Committee stating that no approval has been given by the Committee to any particular issue of securities shall be admissible as evidence of the matters stated therein.