KENYA: CMA publishes consultation on Proposed Capital Markets (Securities Lending and Borrowing and Short Selling) Regulations, 2016

Tuesday October 25 2016

The Capital Market Authority (CMA) with the support of the World Bank is in the final stages of developing the Capital Markets (Securities Lending and Borrowing and Short Selling) Regulations, 2016 to enable securities lending and borrowing in the capital markets.

Securities lending and borrowing is the temporary transfer of securities from one party to another with a simultaneous formal agreement to return the securities at a pre-agreed price either on demand or at an agreed date in future. This, as a mechanism for covered short selling, is intended to increase overall market liquidity and flexibility of financing by increasing the volume of securities potentially available for trading and further increases depth and efficiency in the capital markets through price discovery.

Comments are invited on the draft framework up to 25 November 2016 via email, hand delivery or post.

Please click the link at the top of the page for the announcement and the draft Regulations