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DetailsPublished: Thursday, 24 March 2016 12:24 Nairobi, 18 March, 2016…In effort to improve the market environment for issuers of securities, the Capital Markets Authority (CMA) has announced the gazettement of amendments to the Capital Markets (Licensing Requirements)(General)(Amendment) Regulations by the Cabinet Secretary National Treasury. The amendments adopt CMA’s recommendations to reduce the fees paid by listed companies and new companies applying to list at the point of approval for issue of equity securities, corporate bond issues, capitalization or rights issue. The amendments have been effected through Legal Notice number 35 of 2016.  The Cabinet Secretary has also gazetted the Capital Markets (Derivatives Markets) Regulations through Legal Notice number 37 of 2016, which sets out the consolidated framework on the business of a derivatives exchange, clearing houses, derivatives contracts and derivatives brokers.  Speaking on the reduction of fees, CMA Acting Chief Executive Mr. Paul Muthaura explained, ‘the review of the fees, levies, and commissions was necessitated by the need to ensure financial sustainability of the capital markets sector; and raise levies collected by the Central Depository and Settlement Corporation (CDSC), given its national importance to market stability and to support continuous improvement of systems and strengthened operational oversight’.  The approval fees paid to the Authority by issuers of equity securities such as an initial public offer has been 0.15 percent of the total value of the issue. However, the newly gazetted Regulations have introduced a maximum fee cap of Kshs30 million in order to encourage large capital markets issuances. Mr. Muthaura also noted that for capitalization or rights issue, approval fees paid to the Authority by issuers is now subject to a maximum cap on amounts that an issuer will pay at any one time of Kshs30 million.  In the case of corporate bonds, approval fees have been capped at Kshs30 million. Government bonds approval fees payable at 0.075 percent of the amount raised has been capped at a maximum limit of Kshs50 million. The Regulations have also increased the transaction levy charged by CDSC from the current 0.06 percent to 0.08 percent of the value of a given transaction. The transaction fees levied by brokers at the Nairobi Securities Exchange have been reduced from 1.78 percent to 1.76 percent, by reflecting the percentage increase in the CDSC levy, implying that the cost to investors has not increased.   Mr. Muthaura observed that these developments will encourage more issuers to come to the market, while encouraging increased participation of investors in the capital market. 
Published: Thursday, 24 March 2016 09:47 Nairobi, 24 March, 2016…As part of its strategy of promoting investor education among the youth, the Capital Markets Authority (CMA) has awarded a prize of Kshs150,000 for investment in listed securities to Gabriel Mbiti from JKUAT, the winner of the just concluded Nairobi County Capital Markets University Challenge. The Challenge, which has been running from October 2015 to March 2016, attracted interest from 1400 students from19 universities in Nairobi County. In addition to the investable funds, the winning student will visit a capital markets regulator and a securities exchange in an African country for three daysand receive books worth Kshs75,000 for their university.The first runner-up was Susan Lekanaiya from Riara University and the second runner-up was Michael Mulei from Kenyatta University, who were awarded investment prizes of Kshs100,000 and Kshs50,000 respectively. The runners up will also visit a capital markets regulator and a securities exchange in an African country for three days.CMA launched the Nairobi County Capital Markets University Challenge to create awareness and increase knowledge about capital markets products and services among the youth in order to broaden the country’s capital markets investor base.Speaking during the prize-giving ceremony, CMA Acting Chief Executive, Mr. Paul Muthaura noted, ‘the University Challenge sought to encourage a culture of saving among the youth so as to drive realization of Vision 2030 ambition of raising our national savings to 50 percent ofthe Gross Domestic Product (GDP). The youth are a key stakeholder for the Authority as we recognize their role in mobilizing long term savings to attain the Vision 2030 goals.’The top three winners will select a licensed stockbroker or investment bank of their choice who will advise them on the portfolio of securities to invest in equivalent to the value of their prize money. Each of the remaining top eight winners out of the final list of twelve students will receive a consolation prize of Kshs5,000 to invest in a portfolio of securities of their choice.The Challenge included four elimination stages. In the first stage, 1400 students from the 19 participating universities sat a multiple choice examination to test their understanding on capital markets products and services.During the second stage, the students chose a topic of interest on the capital markets and made a presentation to a panel of judges composed of CMA staff and university lecturers. The judges engaged the students to test presentation and communication skills as well as the depth of their knowledge on capital markets issues.  Some of the topics of interest for the students were Islamic capital markets, Real Estate Investment Trust (REITs) and Derivatives. The second stage was designed to obtain the top two students from each university. At the third stage, 38 candidates responded to structured questions on the capital markets from a panel of judges composed of representatives from Capital Markets Authority and sponsors -Central Depository and Settlement Corporation (CDSC), Kenya Commercial Bank, Britam, Kenya Accountants and Secretaries National Examinations Board (KASNEB), Pan Africa Asset Management and ICEA Lion Asset Management. The top 12 students identified during third round made proposals on capital markets issues, on which they presented during the grand finale held on 23 March and from which the three finalists were selected.Mr. Muthaura deeply thanked the sponsors for their commitment and support for the success ofthe University Challenge.The 19 universities that participated are; St. Paul's University, Multimedia University, University Of Nairobi, Daystar University, Presbyterian University, Kenya Methodist University, Moi University, Strathmore University, KCA University, Gretsa University, Riara University, Machakos University, Egerton University, Technical University of Kenya University, Jomo Kenyatta University of Agriculture and Technology, Dedan Kimathi University, Kenyatta University, Kabarak University and United States International University.