KENYA: Capital Market Authority to Allow Short Selling

Wednesday January 17 2018

The Capital Market Authority (CMA) has announced that the Capital Markets (Securities Lending, Borrowing and Short-Selling) Regulations 2017 has been gazetted. It is expected that the new regulation will facilitate enhanced liquidity in the capital markets.

This development follows the recommendations of a 2015 World Bank-supported study on the state of liquidity in Kenya which recommended several measures to improve liquidity. The initiative is aligned to the Authority’s mandate of promoting the development of Kenya’s capital market to be an investment destination of choice through facilitative regulation and innovation as anchored in the Strategic Plan (2013-2017) and Capital Market Master Plan (2014-2023).

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