ADVOKS GLOBAL · KENYA
The Capital Markets (Licensing Requirements) (General) Regulations
59. Application for approval of a private transfer
Edition: 2023-10-06 · In force
59. Application for approval of a private transfer
(1)Where it is intended to effect a private transaction of a listed security under regulation 57(a), (b) and (e), a stockbroker representing the proposed transferee shall assess, endorse and submit a written application with the required information and supporting documents—(a)in the case of certificated securities, to the securities exchange where the security is listed, and(b)in the case of immobilized securities, to the central depository at which the security is immobilized,stating reasons why the proposed transaction is eligible to be transferred in a private transaction.(2)Where an application is made under regulation 57(a) or (b), the securities exchange or a central depository, as the case may be, shall notify the stockbroker within seven days of receiving the application whether the securities exchange or the central depository objects to the private transaction or not, after examining and satisfying itself that the proposed transfer is eligible for consideration as a private transaction in accordance with these Regulations.(3)The securities exchange or a central depository, as the case may be, shall, upon determination of any application made under regulation 57(a) or (b), approve and simultaneously notify the Authority that the application complies with regulation 57(a) or (b).(4)The securities exchange or the central depository shall, upon receipt of an application made under regulation 57(e), forward the application together with its recommendations to the Authority for approval.(5)The securities exchange and the central depository shall jointly submit to the Authority, guidelines for approval in respect of the processing requirements of a private transfer under regulation 57(a) and (b).(6)The guidelines stipulated under subparagraph (5) 3 shall apply to all stockbrokers.