ADVOKS GLOBAL · KENYA
The Capital Markets (Commodity Markets) Regulations
27. Consideration for grant of license
Edition: 2022-12-31 · In force
27. Consideration for grant of license
(1)An applicant seeking a licence to operate as a commodity broker shall be required to—(a)be a company limited by shares;(b)have a chief executive officer who is a fit and proper person as described under section 24A of the Act and who has experience of not less than five years in the business of buying, selling or dealing in commodities, spot commodity contracts, derivatives contracts or other securities;(c)have the necessary infrastructure including office space, equipment and trained staff to effectively discharge its activities;(d)have as its directors and key personnel, persons who are fit and proper as described under section 24A of the Act; and(e)have a minimum net capital and minimum net worth as determined by a commodity exchange and approved by the Authority from time to time.(2)Where an applicant is a market intermediary of another licensed exchange under the Act, the applicant shall provide an undertaking that it shall allocate a set percentage of the net capital balance to support its activities at the commodity exchange.(3)The net capital required, shall—(a)not be less than the minimum required net capital balance at a commodity exchange;(b)be kept segregated; and(c)be maintained at all times.