Regulatory Alerts2017-01-01
The Capital Markets (Securities Lending, Borrowing and Short-selling) Regulations, 2017
These regulations establish the legal framework for securities lending, borrowing, and short-selling transactions in Kenya, mandating that all such activities be conducted by regulated persons under specific reporting and collateral requirements. The Capital Markets Authority is granted oversight authority to set criteria for eligible securities, impose position limits on short sellers, and implement emergency price controls or trading suspensions to maintain market integrity. Parties engaging in these transactions must execute formal written agreements, provide specified collateral, and adhere to strict disclosure obligations regarding conflicts of interest and transaction details.
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