ADVOKS GLOBAL · KENYA
The Capital Markets Authority Rules
16. Interpretation
Edition: 2022-12-31 · In force
16. Interpretation
In this rule, the following terms shall have the following meaning—(a)aggregate indebtedness, which shall be calculated monthly, means the total liabilities of the broker or dealer less—(ii)amounts due to a director or an associate;(iii)non-current liabilities fully secured by non-current assets excluded from net capital; and(iv)subordinated loans accepted for this purpose by the Authority;(b)the debit balance shall be the cash amount owed by a client in the client's margin account without deducting any cash deposited by the client as margin; and(c)margin shall mean the aggregate amount of cash and market value of securities deposited by a client into the client's margin account but shall not include securities which are bought or carried in the margin account;(d)net capital, which shall also be calculated monthly, means the shareholders funds or the proprietor’s capital investment for carrying out the business of a broker or dealer, and subordinated loans accepted for this purpose by the Authority less—(i)non-current assets and pre-paid expenses;(ii)unsecured loans and advances included under current assets;(iii)amounts due from a director or associate included under current assets;(iv)excess of the book value of securities carried in the broker's or dealer's own account over market value; and(v)deficits in clients accounts, less any provisions for bad or doubtful debts already made, this amount being computed in detail satisfactory to the Authority.