ADVOKS GLOBAL · KENYA
The Capital Markets (Licensing Requirements) (General) Regulations
25. Sale of securities
Edition: 2023-10-06 · In force
25. Sale of securities
(1)No stockbroker or dealer shall sell securities unless, at the time of the sale—(a)the stockbroker or dealer has or, in the case of a stockbroker, its client has; or(b)the stockbroker or dealer believes on reasonable grounds, that it has, or in the case of a stockbroker, its client has,an existing exercisable and unconditional right to vest the securities in a purchaser of the securities.(2)A person who, at any particular time, has an existing exercisable and unconditional right to have securities vested in him or in accordance with his directions shall be deemed to have at that time a presently exercisable and unconditional right to vest the securities in another person.(3)A right of a person to vest securities in another person shall not be deemed not to be unconditional by reason only of the fact that the securities are charged or pledged in favour of another person to secure the repayment of money.(4)For purposes of this Part, a person shall be deemed to sell securities where he—(a)purports to sell securities;(b)offers to sell securities;(c)holds himself out as entitled to sell securities; or(d)instructs a stockbroker to sell securities.