Category Archives: Capital Markets Authority

Investment-Based Crowdfunding Regulations, 2022

Introduction Crowdfunding is raising funds to fund a project or a business through a website, internet-based portal, or technological application (crowdfunding platform) that allows interaction between investors and issuers. One will require authorization from Capital Markets Authority (CMA) to operate a crowdfunding platform. Investment-based Crowdfunding campaigns: the process of crowdfunding in exchange for shares, debt…
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Foreign Investors Regulations

The regulation provides categories of investors as local and foreign investors. A local investor, if an individual, is a natural person who is a citizen of an East African Community Partner State while, if a body corporate, is a company or anybody corporate established or incorporated under the Companies Act of under the provisions of…
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Security Lending, Borrowing and Short-Selling Regulations

Securities lending and borrowing The regulation covers transactions involving the lending and borrowing of securities. These transactions must be conducted according to the regulations, and where there is a need for an exemption for a sell buy-back or a transaction similar to securities lending, the exemption must be sort from the authority. The parties intending…
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Registered Venture Capital Companies Regulations

A person that intends to operate under the venture capital sphere is generally registered under the Companies Act. However, that does not designate it as a “registered venture capital company” because it only takes effect upon registering it as a “venture capital company” by the CMA. An entity intending to operate as a venture capital…
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