ADVOKS GLOBAL · KENYA
The Capital Markets (Derivatives Markets) Regulations
18. Eligibility for acquiring or holding shares
Edition: 2025-02-14 · In force
18. Eligibility for acquiring or holding shares
(1)A person shall not, directly or indirectly, acquire or hold five per cent or more of the equity shares of a derivatives exchange unless that person has been certified by the Authority as fit and proper.(2)A person who, directly or indirectly, either individually or collectively with other persons, plans to acquire equity shares such that the shareholding of that person exceeds five percent of the paid up equity share capital of a derivatives exchange, shall seek approval of the Authority at least fifteen days prior to the proposed date of acquisition.(3)A person who holds more than five percent of the paid up equity share capital in a derivatives exchange, shall file a declaration within fifteen days of the end of every financial year to the derivatives exchange, as the case may be, that person complies with the fit and proper criteria provided in the Act.(4)Any person who—(a)holds five per cent or more of the equity shares of a derivatives exchange; and(b)does not in the opinion of the Authority, fulfill the fit and proper criteria as set out under the Act—(i)shall cease to exercise any voting rights immediately upon the derivatives exchange being notified in writing by the Authority, that the shareholder does not fulfill the fit and proper criteria as set under the Act; and(ii)reduce the holding of equity shares to less than five per cent of the share capital of the derivatives exchange within twelve months, or such longer period as the Authority may determine.