ADVOKS GLOBAL · KENYA
The Capital Markets (Securities Lending, Borrowing and Short-selling) Regulations
12. Short-selling
Edition: 2022-12-31 · In force
12. Short-selling
(1)The short-selling of securities shall be carried out in accordance with these regulations.(2)A seller may enter into a short-selling transaction if the seller provides documentary evidence that shows that he or she has—(a)entered into an agreement to borrow the securities to cover the short sale;(b)reasonable grounds to believe that the securities will otherwise be delivered to him or her in time to cover the short sale; and(c)entered into an arrangement with another party under which that party has confirmed in writing that it will have the securities and will deliver them in time to cover the short sale.(3)A person who contravenes the provisions of subregulation (2) commits an offence and shall be liable, on conviction, to the penalty specified under the Act.