ADVOKS GLOBAL · KENYA
The Crops (Tea Industry) Regulations
25. Approval of trading rules and regulations
Edition: 2022-12-31 · In force
25. Approval of trading rules and regulations
(1)Auction trading rules and regulations shall be submitted to the Cabinet Secretary for approval before application.(2)Any changes to the trading rules and regulations of the auction organizer made within the course of the year shall be submitted to the Cabinet Secretary for approval.(3)The Cabinet Secretary shall, before approving the trading rules and regulations, satisfy himself that they are in compliance with the provisions of the Crops Acts (Cap. 318), the Competition Act (Cap. 504) and any other relevant written law.(4)The trading rules and regulations developed by an auction organizer shall provide for—(a)the carrying on of the tea auction generally and details of trading clearing and settlement systems proposed to be used by the auction organizer;(b)mechanisms put in place to prevent market abuse practices;(c)reasonable access to all registered members to participate at the auction;(d)mechanisms for effectively investigating breaches of the trading rules, enforcing the trading rules and providing for appeals;(e)reporting procedures to the Authority whenever it rejects any application for membership, where it suspends or expel a member or where it suspends trading;(f)Procedures for expulsion, suspension or disciplinary action against members for conduct inconsistent with just and equitable principle relating to trading in tea or for contravention of the trading rules and regulations.(g)the clear demarcation of roles and responsibilities of the board, chief executive officer and the committees of the board;(h)the appointment of directors and a fair representation of persons in the selection of members of the board and administration of its affairs including professions relevant to the tea industry;(i)the powers of the chief executive officer including in emergency situations;(j)provide for the governance of the conduct of activities of its members, including their responsibility to act with integrity.(k)Mechanisms to ensure that there is no conflict of interest in dealings amongst its members.(l)Mechanisms for engagement and consultations with all its members and other relevant stakeholders.(5)An auction organizer shall not admit into their membership persons who are not registered by the Authority.(6)The auction organizer shall ensure that members shall only offer for sale at the auction the type of teas for which they are licensed to manufacture.(7)An auction organizer shall ensure that only members who have valid licenses and registration certificates from the Authority participate in the auction.(8)An auction organizer shall not later than the fourteenth day of each month submit to the Authority a monthly tea auction report of all teas sold through the auction in the previous month in Form AFA\TD\R as set out in the First Schedule.(9)An auction organizer shall notify the Authority of any intention to suspend trading at the auction at least fourteen days before the intended suspension.(10)A person who contravenes the provisions of this regulation commits an offence and shall be liable upon conviction to the penalty prescribed under section 37 of the Act.