ADVOKS GLOBAL · KENYA
The Capital Markets (Licensing Requirements) (General) Regulations
4. Rules of the securities exchange
Edition: 2023-10-06 · In force
4. Rules of the securities exchange
(1)The rules proposed to be adopted by an applicant for approval to operate as a securities exchange shall contain provisions on the—(a)admission to the listing, suspension or de-listing of securities by the securities exchange, through a procedure prescribed by the Authority;(b)conditions governing dealing in securities by its trading participants so as to ensure protection of the rights of investors;(c)prompt disclosure, in a manner that is fair to all investors, of material information of a price sensitive nature and information likely to affect the price of a security including fees on management contracts, to enable appraisal of an issue by investors;(d)protection of investors against abuse of confidential information, misleading information, fraud, deceit, and other adverse practices in the issuing and trading of securities;(e)prohibition of market manipulation in any form;(f)investigation into trading in securities and financial transactions of trading participants and for conducting surprise checks on such trading participants;(g)suspension of trading of any security for the protection of investors or for the conduct of orderly and fair trading;(h)the conduct of securities trading by trading participants and the manner in which information relating to transactions is to be maintained and reported to other trading participants and customers of the securities exchange;(i)segregation from other business accounts of trading participants, of customers’ funds and securities;(j)arbitration of disputes and provision for appeal to the Authority by trading participants, investors and listed companies;(k)proper safe keeping of securities in its custody;(l)carrying out of the business of the securities exchange with due regard to interest of the investing public;(m)trading rights on a securities exchange;(n)admission of trading participants to the securities exchange, registration of representatives of trading participants with the securities exchange and to provide for different categories of trading participants, where appropriate, and the rights and obligations attaching to each category;(o)conduct of trading participants, their representatives, authorized clerks and dealers;(p)responsibility of trading participants for the actions of their employees and agents in their dealings with the public; and(q)listing of medium and large sized companies in the respective market segments such that investors have a range of investment opportunities in listed securities across all sectors of the economy.(2)The provisions made under paragraph (1) shall conform to the provisions of the Act.