ADVOKS GLOBAL · KENYA
The Capital Markets (Coffee Exchange) Regulations
4. Regulation of coffee exchanges
Edition: 2022-12-31 · In force
4. Regulation of coffee exchanges
(1)A person shall not carry on the business of a coffee exchange unless he has applied for approval and licensed as a coffee exchange by the Authority in such manner as the Authority may provide.(2)An application under paragraph (1) shall be made in Form A as set out in the First Schedule and accompanied by —(a)the copies of memorandum and articles of association, certificate of incorporation, and rules governing the operations of the exchange, which —(i)are in a form satisfactory to the Authority; and(ii)restrict the applicant to the business of operating a coffee commodity market and services incidental thereto;(b)details of trading, clearing and settlement systems proposed to be adopted by the applicant;(c)the application fees set out in the Second Schedule;(d)satisfactory bank references;(e)a business feasibility plan evaluated by an entity with a proven track record and expertise; and(f)any such additional documents as the Authority may require.(3)In order to be entitled to apply for a licence under regulation 3, an applicant shall, unless otherwise expressly exempted by the Authority, be required to—(b)have a minimum authorized, issued and paid up equity share capital to support initial infrastructural investments and three years' operating capital;(c)satisfy requirements relating to ownership and governance structure specified in these Regulations;(d)have its directors and shareholders who hold or intend to hold share, determined as fit and proper persons as provided under section 24A of the Act;(e)satisfy the Authority on the exchange's financial capacity functional expertise and infrastructure;(f)have in its employment, sufficient number of persons with adequate professional and other relevant competencies and experience; and(g)comply with any other conditions as may be specified by the Authority.(4)The Authority may, if satisfied that the applicant has demonstrated that it is capable of complying with the requirements under this regulation and upon payment of the licensing fee set out in the First Schedule, grant the applicant a licence to operate as a coffee exchange.