ADVOKS GLOBAL · KENYA
The Capital Markets (Licensing Requirements) (General) Regulations
17. Dealers’ financial requirements and investment limits
Edition: 2023-10-06 · In force
17. Dealers’ financial requirements and investment limits
(1)The level of shareholders funds (paid-up share capital and reserves) shall not be below twenty million shillings, at any time during the licence period.(2)A dealer shall—(a)set aside investment capital of not less than twenty million shillings (except as provided under paragraph (3)) in cash or portfolio of listed securities, or such higher amount as may be prescribed by the Authority; and(3)Where a dealer is promoted by a stockbroker through a subsidiary, the minimum investment capital committed to dealing operations by the subsidiary shall not be less than five million shillings in cash or listed securities portfolio at market value or such higher amount as may be prescribed by the Authority.(4)A dealer shall maintain a liquid capital of thirty million shillings or eight per cent of its total liabilities, whichever is higher.(7)A dealer shall maintain an investment portfolio out of its investment capital equivalent to a minimum monthly average of fifty per cent in listed equities and the remainder in listed fixed income securities provided that within twelve months from the date of these Regulations, the investment of the minimum monthly average in listed equities shall be adjusted to sixty per cent.(8)(a)At least an average of twenty-five per cent of the portfolio of securities held by a dealer shall be turned over every quarter and seventy-five per cent of the portfolio be turned over every twelve months.(b)Every security held by a dealer shall be turned over at least once every eighteen months.(9)For the purposes of this regulation “turnover” means the value of securities purchased or sold during the period.