Capital Markets and Securities (Accounting and Financial Requirements) Regulations, 1996

~.. Capito! Markets alld Securitics (Accol/llli/lg alld Fillllllcia/ !?C(lllirclllcl/(s) GOVEfl~MLNT NOTICE No. 14 publishcu on 101//97 0-, THE CAPITAL MARKET'S AND SECURITIES ACT, 1994 (Acr NO.5 OF 1<:)<)4) HEGULATIONS , Made l/Iu/ei' sectioll 37(2) 11;1</ ·126 TIlE CAPITAL Mr\Hi<El SAND SECURIIIES (ACCOUNTING AND flNANCAL ItEQUIRE. MENTS) ItEGULATJONS, !l,><J] TABLE OF CONTENTS PART I PRELIMINARY

1. Citation.
2. Interpretation. PART II ACCOUNTING RECORDS
3. Recorus to be up-to-<.hite. 4, Audit trail.
4. Reconciliation of customer mOllcy.
5. Conformity with accounting st<lndarlls.
6. Inspection 'of records. PART III FINANCIAL STATEMENTS
7. Duty to pr~pare annual financial statements.
8. Form and content of financial statement. l!). Audit of financial statements.
9. Subniissioll of financial statements to the Authority,
10. Auditors report.
11. Qualified rcports. PARTlY. CUSTOMER MONEY
12. Customer money to b~ held 011 trust.
13. Duly to keep cll~tomer money safe.
14. \Vithdrawal of customer moncy. 24 tD

~.--~-:-' Capilll/ /l.farkclS al/tl SCCllrilics (l1ccUllllIil/g (l1Il/ Fil/(II/cilli Ucqllirc/1/c//!J) C.N. Nv. /./ (cull/d.) PART V FINANCIAL RESOURCES 17. Minimum Net Capital. 18. Minimum liquidity margin. 19. Inability to comply with linam:ial requirements. SCIIEDULE ,•... PART I PREL;/\IINAHY

1. These Regulatioas maybe citeu as the Capital Markets ailu Sec￾urities (Accoullting and Fin:illcial Requirt::lllents) Hegulations, IlJ96.
2. In these Regulations, unless the context otherwise rcquires- "Act" means the Capital M~\rkets and Securities Act, Il.N4. I'approved" means approved by the AUlhority; "customer bank account" means <! bank accollnt est~lblis!ll;U fur ihe purposes of Regulation 15. PART 11 ACCOUNTING RECORDS
3. The ubligatiohs of dealers and investment advisers spell out under these Regulations are continuing obligations anu continuous performance of them is requireu so as to ensure that records arc updated daily. 4.-( I) Any intormation requireo by the or these Regulatiolls to be recorded shall be recoroeu in such a way as to cllauk a particular transaction to be iuentified at any time and traced through fwnl illiti￾ation of the order to final sellkmenl. (2) All records shall be arranged tiled, illuexeu and ClOSS Jekl!- enced so a,s to permit prompt access to allY p;.Ifticular record.
4. Every dealer and every investment adviser shall, at least ollce cVery two months, reconcile lhe balance on each custuiller bank account as recorded by it with tl~~balancc uf that account as set out on the statenlcnt issued by the bank .. 25 CiIJ' lion I,,· lLrprc￾taliun A,I No. 5 vi I')'),) Re· ,orJs l<> he \lp III JaiL: l\uJil A,I Irail HeCOIlt:ili￾atiol) 1,)( CliSlulll<:r IlIUIICY

Copilal Markets aftd Securities (AccrJUlltil/g alld Financial Requirements) C.N. No. 1:1(collld.) Confor￾mity with ~CCOUllt￾ing stnn￾dnHJs Inspec￾tion of re￾cords Duty to prepnre annual finRncial stllte￾ments Form ~nd content of financial state￾menls "i A IIdit of finnncial st~te￾ments 6. The accollnting records required to be kept under the Act and these Regulations shall conform with ihe Tanzania Stutements of Stan￾daro Accounting Practices issued by the National Board of Accountants and Auditors. 7. Accounting records which are required to be kept underthe Act and these Regulations sltall, at any time during the period in which they are requi.red to be preserve~, be pro~uced to the Authority or to any person WIth the mandate of the.A.ut.honty, on oemapd at such reasonable time and place as may be specitkd by the Authority or such person. PART III FINANCIAL STATEMENTS 8. A dealer shall, in respect of his securities business, prepare (or each financial year an annual financial statement which shall consist of- (a) a balance sheet as at the last day of the financial year; and (b) a profit and loss account for the financial year. 1 .... 9.-(1) Ev¢ryftnancial staten·lent required to be prepared under the Act and these Regulations shall comply with 'the provisions of the Schedule, sQ;.far as practicable ;with respect to the form and content of the balance .sh(1ct, the profit and loss 3ccount and any additional infor￾mation to he provided by way of note-s to the financial statements. (2) Where compliance with the provisions of the Schedule and other provisions of the Act and these Regulations as to the matters to be included in a balance sheet or profit and loss account or in notes to them, would not be suffkient to give a true and (air view, the necessary additional information shall be given in the balance sheet or profit and loss account or in a note to them. (3) If in special circumstances 'compliance with any of these provisions is inconsistent with the requiremel1t to give a true and fair view, the person required to comply shall depart from that provision to the extent necessary to give a true and fair view. (4) A dep;lrture under sub-regulation (3) from any such provision shall be. accOllipanied by a n?"b'·~9. ~he financial sta,tements providing \he parttcul;"lrs of the departure ~n(} the reasons for It.

• f ~. , .•. • '. I...:i 1./1" 10.-(1) I\n allllual financial statement required to be prepared under the Act and these Reg!lation:; shall be submitted to an auditor for audit and sldl Hblain an auditor's report'ihereon which report shall comply with ihe reqtliremenls under Regubiion 12. 26

~"'.' Capita! Markets 111/£1St'curilies (ACCUUlllill!; WIt! FillllflCill! Requirements) (;.N. No. 14 (coII,d.) (2) The auditor's report obtained in compliance with these Regula￾tions shall be submitted to the Authority together with- (a) the annual financial s!atcme£}t; and (b) confirmativn in writi,.g from the person who prepared the finan￾cial statement that he has complied with each and every require￾ment of the Act and these Regulations pcrtuining to the prepara· tion of the financial statement. .. '~;-:~ (3) Where the auditor's report is qualilied on the 'gro~11Js of the auditor's uncertainty as to the completeness or accuracy of th~ accounting records, that report shall when subrnitted by a dealc'r or exempt dealer be accomp'.IOied by a written,document signed in the CIS'I; of a company by two directors, and in the casc.uf ~lllindividual by the licellsed individual stating wbether- (a) all the accounting records of the person submitting the rept)f! have been ma:.je available to the ailditor for purposes of audit. i) '\V'" :J0 .. l ,.- -- ;~. \ . ........ ~_ .... (b) all transactions undertaken by the person submitting thy report have been properly reflected and recorded in that person's accounling records; and (c). all other records of the person sllbmilling the report anu related information have been made available to th~audi1(~r. .~.• n· ..t •• ~ "('-J rJ..n('~l-{9"""~ . I!,,;;- !" CJZ:.r!~ bl. 1L Every/Jinancial statement prepared in accordallcelWlth~ tl1e Act and these Regulatiuns shall be submitted. to the Authority:onthe pre￾scribed day. )'i . "J-'")'-' •• ;" 12.-(1) Every auditor's report shall be addressed to th~ ;.f\uthVIity , and shall state whether the annual financial sl<)tclllent of a de.\Ier or exempt dealer has becn audited in accordance with <lpprovedau'Jitiilg standards .. :., (2) The alJditor's report shall also slat~;)vhe!her in the opinion of (he auditoc- .'r-'-~ 1)1 ,. (a) the r~spective annual financiql ~fament has been properly pre￾pared in accordance with tl A-s~~?P these Regulations; (b) in the case of the balance shed. a true .1110 fair view is provided of the affairs of the persoll audited as at the end of the financial year; -j'I)'!.:.- .... (c) in the case o(the profit alldl~I?~)~t();;i'~i,"h"i~~e and't\ir'y!~w is given of the profit or loss oqt1e p<;rsoll audited for th~. 1\II~ncial year; 27 Suomis￾sion of financial state￾ments to the Au￾thorilv A:.oJilur's report

Capital Alorkets 01/'/ Securitics (/Iccoul/til/~ 1111'/ Filllll/cia! RC(luirclIlcllts) G. N. No. J.J (mmd.) (d) the per~on audited h;1s, throughout the financial year kept propel ;1ccounling records ill accordance with the reC]uirements of the Act <\nd the~e Regulations. (e) the person auditeo has throughout the financial year, kept cus￾tOlller Illoney properly segregated in accordance with the Act and these H.cgulation; (f)' the balance sheet;]nd the profit and toss account are ill agreement with the accounting records of the audited person. (g) he has obtained ,~Ithe information and explanations which to the be~t of his kno\Ileug.e ancl belief, ;]re necessary for the pur￾poses of his audit; and' (h) the person :\lIdited h;1s maintained throughout the fin;1ncial year systems adequate to enable him to identify documents of title, or documents evidencing title, to securities held in safekeeping for his customers in accordance with the Act. Utlal;l;ed reporl Clislol11cr IIHlllCY In he held 011 tlllq !JUlY 10 keel' etls- IOnlcr 1I111l1l'Y sa re I:1.-( I) If an auditor is of the opinion that one or more of the require￾ments under Regulation J2 has or have not been met, he shall state the fact in his report and shall specify the relevant requirement~ ami the respects in which they have not been met. (2) If an auditor fails to obtain all the information and explanations which, to the best of his knowledge and belief. are necess;lry for the puq~oscs ~f his audit, he shall state that fact in his report. (:I) I(an auditor is unable to form an opinion as to whether one or more of the requirements llllder:Regulalion 12 has or have been l11et, he shaii st;1te that hct in his report and shall state that fact ill his report and shall specify those requirel11ents and give the reasons why he has been ullahle 10 form an opinion. PAIn IV CUSTOt-.IEH MONEY 14. A deller or investment adviser sl1<111hold customer money on (rllsl for the rcspective Cllstolllcrs for wholll the Illolley is received or held according to the custol1lers respective slwres. l'i. Every custol11er Illolley. II 11less p;1id out or for <I custolller, nlllst he kept ill.all ;ICCOUllt ;It a licenscd hallk Oil trust for the custol11er. 2R

Capitol Markets {/llil Securities (Accountinb ant! FillJlIlCiall?equirclIlt'lIls) G. N. N". J.I (wllid.) , PAol~T Y 16.-( I) Subject to sub-regulation (2), mOlley m;IYbewithJrawll frOIll a custolller bank account only if·- (a) it is not cllstomer Illoney; (b) it is properly rcquircJ for pnYlllcnt to or 011 behalf of a customer; or (c) it is properly transferred to another custollier b;mk aCcount in the customer's own name. (2) A dealer or investment :\uviscr wjth~raw money fmnl a customer bank account for or lowards payment of his own fees or cOlllmissilln only if the fees or cOllll!lissillllS accoru with ,:rrang<;nlents agn:'cu with the customer. FiNANCIAL RESOlJltCES 17.-(1) A dea!t:rshutl at all tillles pruvitJ...~and nlaintain in his business as a dealer, a' net capital of such sum as will be prescribed by the Authority_ (2) In this Regulation, the expression "net capital" means the SUIlI total of approved assets less approveJ liabilities of a (kaler. IS. A dealer shall at all times in his business as a dealer llIaintain a liquidity lIlargin of not less than a pe:rcCII!UIIl of the: lIIinilllUllIl)Ct capital r~C)uirclllelll speciiicd in Regulation 17 to.bc lix:.:J by the Authority_ 19. If a dealer becollles awan.~ of his inability to comply with the llli;Jinlllln Ilt:l capital orliquidily margill re:qllircmenls, II.::shall forth￾with- . (a) notify the 'Authority, and allY seCluities cXJ.:hallge of which he is a member; anJ (b) cease dealing in securities othawise Ihall for the purpose of giving effect to any agreelllent or arrangement enlered into before the time wllell he becomes s() aWar~. SCllEDULl (,\I(/(". IIllda U'-glltar;ull ~I{t) FURI! ANI> CONTENT or FlNi\NCI,\L ST,\TEI\tENTS PART I GLNut.\1 ltul LS

1. Subject Iu the plt)'isiuns uf this SdlC.:duk. an ;lIHIlI;ll till~lllt.:i;tlst:.HCIUCllt n:quircli '"llkr the;e Itq;lliatiol\s ;hall ;IHlW-- ( •..•) ill III(': '-;l~l: u( the !l;,l;lIlCC ~h4...Tt till.': itL"IUS li:-;h:J iu ,114": h;tlaIKt.: :,hcct fun,,;,t set out !Il t\'iK:IHlix 1 Culhi,> Sdh:dllk; ;Iud (h) ill thl.: .·~scuf the..: plottt ;1I1d loss ;h.:cuunlltcl1\s Ir>tcJ in tilt.: prufit ;..uJ lu~s;tc..:.'l)UIlI fUllHal St:l out in t\pr~l\dix 1 to litis S...:tn:duk. 2') With· orawal 01 CUSlOlllcr .noney t\1illillHlIU capit:" Mil1iUlUIH 1i4",dil)' IH;UglJ
   Inahility 1. cOIIIl'ly with linallci,,' IC:tluirt.:- IHenlS

'. -' "':"{ ''If:O II' Calli/al/Harke/s allt! Securi/ics (Accoun/ing alld Fillallcial Require/JIcflls) C.N. No. J.I (coli/d.) SCIIEDULE-(COllfd.) 2.~( I) The corresponding a1110111.tfur the irl1lnediately preceding financial year in ropect o[ cvery ;tern shown in a haLo nee sheet or profit and loss account or in notes thereto. sh.dl he shuwl1. (2) Where the corr"'pol1dil1g al1lounl is not comparahle with the amount to be shown for the item in question in respect o[ the financial year to which the halance sheet or profit and loss account rclaies. the [ormer amount shall he adjusted und particulars o( adjustment and the reasons [or it shall he disclosed in a note tu the account. PART 2 ACCOUN·I ~G PRINCIrLES AND RULES •... '.•. 3. Suhject to paragraph 5. Ihe ;nnounts to he included in respect o[ all items shown in a))alance sheet and pn\fit and loss account shall he determined in acchnJance wilh the accuunting standards and guidelines as approved or accepted by the National Board of Accountants and Auditors which arc in force [rom time to time. 4. Suhject to parll!,-raph .1, the ilbns shall he included in such a way AS 10 renect the suhstance and not merely the [orm of the underlying transactions and balances. 5. If it appears to any person preparing a financial statement that there are special reasons for departing [rom any of the principles and Regulalions .s(;lted in parRgraphs 3 and 4 in preparing any fin.nlc;al stalement in respect of any financial year, he may do so, hut partindars of the departure, the re."sons for it and its dfect shall be given in a note 10 the financial statement. .. APPENDIX I ., <IV' BALANCE SHEET FORMA T A. -fiXE) ASSETS I. Intan!;iblc Assets

1. Development costs.
2. GO(ll1\vill (I).
3. Other. II. Tangible Assets I. Freehold land and huildings.
4. Leasehold land ~nd huildings.
5. Motor vehicles.
6. Oflit-e cquipment :lnd (omp\lters.
7. Fixlures and li\lin~s. (). Payments 011 CI('COUllt. 7 . .other tangihle assels. Ill. Investmenls I. Losses to and shares in group «lIupanies.
8. Other lisled investments. J. Other unli'·te(I'lnveStments. -', '1<· fJ. CURRENT ASSETS I. Physical sloth. II. Dehwrs (2) I. T,adc dchtors (.1).
9. Olhcr debtors. l !\nIlHlf1ls due ffllnl conocch:d and g.r..llup CUlllpanics.
10. Prepayments and ao;rued income. 30

Capital t.lurket5 (/1/1/ Securities (A CCV111I ting ant! Financial I?cfJlliremcn15) G.N. Nv. 1-1{m/llJ.} SCIIEDUlE-(w/IIJ.) III Investments. IV Cash at bank and in hand. C. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR I. Bank loans anu ovt:rJruCts. 2. S"bordinateJ loans (4). 3. Other ,kl>eJllurt:: loans. 4. Trade clt:ditors (5). 5. Investments (shOll posiJions). 6. Income lax.

1. Amount due !l' group and connech:d companies.
2. Olher creditors. Y. A<:cruals and deferred io<:oJlle. '
   D. NET CURRENT ASSETS ILI.(.U1l-ITIES) E. TOTAL ASSETS lESS CURRENT LlAUILlTIES "' 1;1.. ,. (i _. . ./ I., F. CREDITORS: AMOUNTS FALLING DUEAFfERMORETIIANONE YEAR I. 13ank loalls and overdraCts.
3. Subordinated loans (4).
4. Other debenture loall~.
5. Trade creditors (5).
6. Income tux.
7. Amount due to group and connected companies.
8. Other creditors.
9. Accruals land deferred income. ~ i'" ~i. G. PROVISIONS FOR LIABILITIES AND OIAKGES I. COnlmissions 011 indelllnity ICIIIIS.
10. Pension and similar obligatiOlls,
11. Taxation induding deferred taxation .
12. Othcr provisions. H .. TOTAL ASSETS LESS TOTAL LIAl3ILlTIES L CAPiTAL LAND RESERVES I. Called up share capital.
13. Share premium account.
14. Partners or proprietor's capital accounts .
15. Partners's proprictor's currcnt ·accounts.
16. Revaluation reserve.
17. Olllt:r reserVeS.
18. Protit and loss account. I!' ':f .' Noles on the 13alance Sheet Forutat GOODWill ." Goodwill shull be induoed only in so far as it waS aC'juired for valu~blc consideration. (2) DEUTORS ,. The amount falling due afta mor.: than one year shall be ~hown scpariitcly for teach item inclulkd under dehrors .. (3) TRADE DEUTOHS (3) Ft~~:J "" t'1l1 I,..; OUlstanding fur morc lh"n )0 ,lay,; ". Outstanding for 3U days or less. ",:1".'- Ill'" ·11U·*.· • .I· "I t', 31

ell!litlll fI-/ark('!s lIJ/a Secllrit;('s (AccountiJ/g ana Financia! R('quiremcllfs) (;. N. No. I.f (Wl/td:) SUI EDULE-{col/tr!.) (ll) CO/ll/IJiuioll.< Outstanding [or Illore th'"1 :\0 days Outstanding [or 30 days or less. (c) Other AUHHlIlt <HIISlall"ill!1- [or nulre Ihan 30 days Alllount Outstanding for :\0 days or less. ~) SUlJOltDINATED LOANS (a) Long term suhordinated 1<,IIIS (b) Short term suhordinat ••d loa~s (c) C,'lI,ulliled undrawn subordinated loan faeililies (d) Bank Undertakings. (5) .TltADE CREDITORS (a) AIllOUlit due 10 be paid against delivery of securilies; (b) Alllounls duc 10 he paid in respect of securilies tramactiolls otherwise than against delivery o[ securilies; (c) dlhers. I I' A. DEALlN(; APPENDIX 2 PROFIT AND LOSS ACCOUNT rOltMAT ,1 Gains/losses on principal dealings (Iralli"g) l. equilies; 2. deht inslrtllllenls; J. uni!., in «>lIeclive invesln,ent schemes; 4. foreign o<:hall&e; 5. other--(spccifti. D. ItEVENUE I. COllllllissions on transaction in colleclive investment schellles I. authorized mutual fund and unit trllst schemes; 2. other-(sp~~i[y). II. C(lll1rni~si()ns nil 5.ccuritics (rans~ctiol1s I. e'luilies; 2. deht inst,ulllcnls; J. olhcr-·(speci[y). III. Investment """"'gclncnl fecs. IV. ree ineollle in respecl of tin,lIlCi,,1 advice. V. COlllpany rn;Jn;lgCII\l'lll fcc. VI. Truslee fees. '\t' VII. Inleresl a"d divide"ds I. il1vc~tlllclll~. ~P5itiun:, . ," 2. Ipan aCC(llll1t~ ;111<1fn:lrglll a(,:tnlln(~: . J. in respect "f balance in custoiller hank 'lCcounls; 4. lllher-(speci[y) 32

'. ('u/,illli 111,1/ kcls UIIII Scc/lrilin (/ICClJ//lllillg alltl Fillullciu! U"'//ii, 011 "11 II) (;.,, Nil ,.J ((lilt/d.) SClIEl>ULE-(col/ld.) VIII. Dc"lln~ ••n•..•scttlemcnt services. IX. Rcvcaut: frolll rt:scarch an •..•cunsulting servict:s. X. Rd ••incd underwriting an •..•placing conllllissiuns. XI. Olhcr rcvl'Ilnc-(spccify ~f ", ••Ie,ial). C. EXPENDITURE I. CUJlHllissions I. p"iLl lu slaff; 2. p"iLl to olhc, invcstmcnt husl'l'l'cssc"s; 3. (Ilhcr-(specifv). !1. S"larics amI othc, cmploymcnt costs (~xdusivc uf cum;n;ssivn). IiI. Dircctors Cnl<,IUillcnts. IV. Slaffhonusc~. V. Intcrcst cha, gcs. I. payablc to customcr in rcspect 01 customcr's 1Il0ncy halanccs; 2. otht:r-(specify) VI. Establishlllent costs. VI!. COlllmullica;ions and malkcling. V III. Offtcc ':4uiprllcnt and servic.:s. IX. Provisions fur losses. ba •..•"\Il} doubtful dd>ls. X. Prokssional charges. XL Securities cxchanbe and c1ea,ing house chargcs. XII. Rcgulatory fees and expenses. XIII. Audit fet:s (including expenses). XIV. Miscellaneous office expensc·s. XV. Other expcn •..•ilUre---sl'ecify if malc,illi. D. PROFIT OR LOSS BEFORE TAXATION E. TAXATION F. PROFIT OR LOSS AFTER TAXATION G. EXTRA ORDINARY rJTl\lS II. PROFIT OR LOSS FOR TilE FINANCIAL YEAR. Oar es Salaam 9th Janu;,ry, !997 D. N. YONA, Minister of Stute, j'!tlllllin1j fin Iht: time being discll<lrgil/}: the f/l~lC/iolls of ,\lilli.Her for fint/llce JJ

Citol;OIl Interpre￾t"l;llll Act No, ') of 19Q,
en/lila{ /\1(/,-/..('/.' (lnd S('(/I/ itie5 (11dl'erlisc1I1cnls) HCR,tllllions (;()Vl-:RN~I,-NJ NOlleE No, 15 Plllll;shed (In 10/1/97 TIlE CAPITAL MARKETS AND SECURITIES ACr (No, .5or 1<)94) REGULATIONS Mildc IInder section /26 , .... lilF CAI'II,\L ~lARKFIS SEClIlUTJES (ADVERTISEMENTS) HEGULAIIONS. 1997 TAGLE OF CONTENTS PART I PRELIMINARY I. Citation. 2. Interprcl:llioll. PAIZT II (Zr:s mlCiIONS AND CONDITIONS J. Advcrtiscmcnls offering ~elviees, 4. Advertiscments to eomr1y with Schedule. S. Directio!1s by t!!e Authority. PART I PRELIMINARY I. These n.eglJl;ltiolls IIl;ty he cited as the Capital Markets and Sec￾urities (Advertise/llents) IZegulations, 19<)7. 2-( I) III these Regulations. unless the context otherwise reC]uires- "Act"' mealls the C;lpitallvLtrkets ;Jlld Securities Act; "image advertist:ment" means an advertisel11ent that- (a) rroillotes rublic aW;lrelless of a licensee; (b) descrihes the services ;J licensee rrovidc.:s or the types of invest￾ment ;J licensee l11;Jrkets; (e)u)l11lllends a licellsee in general but not on allY partieubr service ;1 licensee provides or types of investment a licensee IIl;JI kets; or (d) offers to supply further illforl11ation Oil request, "securities advertiscmcnt" 1l1C;lI1S;1I1Yadvertiscment for or in connection with securilics or seClllities husincss: J,1

ClI/Jillll MlIrkt!ls 1I1li1 Securities (Adl'CI"li\l!lIlculs) 1?/'~I;llIli()l/s (;.N. ,v". /5 ((JIll.!.) "licensee" means a persoll licenseu under Part IV of the Act; "promotion" means advertising, issuing <.lprospectus, <.lppliC;llioll forlll or proposal form, or circulating or makillg <.lvailablc promot iOI<.llmate- ;:;''' --'- "short forlll auvertisement" means advertisement that cOlltaills a liccll￾see's name anti in respect of the business of <.llicensee's securities busilless-- (a) displays the licensee's address, telephone number, symbol or . .logogram; ~b) describes the liccllsee's bllsines, :11\1 tlle fees chargeJ; «~) (~Olliaills a statemelli that the ]icel~ee rs regulaleu in the -:onuuct of the licens~e's business by the Authority; (d) states in rebtion to securities that the licensee Il<.lYbuy or sell or arrange to buy or sell their names, iJldical!ve prices, uiffcrellce of prices frem previous prices, their income a:1U yielus and their earnlngs or price or eamings r<ltiol!; or (e) st<.ltessimply as a.matter of fact, anu not so as to imply any offer to deal, that the licensee <llone or with others named, arrallgeu Iheissue of or a tr<.lnsaction in a partiqllar security. (2) For the purpuses of thesc Regulations 1:L1ladvcrti$elllcl!t issued outside Tanzania shall be treateu as issued in Tallzania if- (a) it is directed to persons in T<lnz<lnia; or h'" (b) it is made available to persons in Tanzania in a newspaper, jour￾nal, magazine or in publication published and circulating priaci- . pully outsjde Tanzania or in a sOllnd or tcle""isioll broauc.ist trans￾mitted principdly for receptiGn outside Tanzania. PART II RESTRICTIONS AND CONDITIONS 3. Every <ldverliselllent offering services in the securities services shall include- (i) the name;: and address of the person lll<lking the offer; (b) a uescription of services offered; (c) a general statement of the terms and Cl)nditions of Ihe services offered; (d) the place where the person making the offer carries 011 business; and • (e) such other information as may be directed by the Authority. 4. A licensee shall not issue or cause 10 l)e issued whether in Tanzania or elsewhere, a securities advertisement unless the requirements of the Schedule to these Regulations arc complied with in relalion 10 thaI advertisement. 35 Adver￾liselHenl offering .scL"urilil..:s .t\d't:r· lis«':lnnll to uuuply 'with S~Ii.."dtlk

Crillitill Markets IIlId Secllriti('s (lId"('rtisel/lcllts) Regulations (;.N. No. 15 (ml/ld.) Dircc￾tiolls hy Ihc I\u· tlltHity 5.-( I) If thc Autltority collSiders that any securities advertisement issUcd, caused tel bc issucd or proposed to bo issued by a licensee is misleading of is otltcr\vise in brench of these Rcgulation~, tlte Authority Illay by notice in writing give tlte licensec a direction under this Regula- t ion. (2) Adireclion under this Rcgulation l11ay corimin all or <lny of the followilig prohibitions or rcquircments. naillely- (a) :\ prohibition 011 the issuc {)f advertisemcnts of a specifie~ kind; (b) a rCtjuirement that advcrtiscmcnts nf a particular description shall be tllodilled In a specified mOtlnerj (c) a prohibitiOl\ on t?I'(",.,isSl~eof any advertisements which Is \vholly or subst<lIltially a rcpetition of an advcrtisement which I\as been issucd or is proposed to be Issued and which is identified in the dircction; (d) a requircmcnt to take all practical steps to withdraw froni display itl any pl;lce or frotll circul:.Jtion flny advertisement or any adver￾tiscments of a particubr description specilled in the directiol1; (e) a reqllirement, in respect of a particular advertisl1lent; that a correction be published in the manlIer ano form specified by the Authority. i ,:.. SCfll2DULE (MI/clc IIl/da Ilcglltalioll 4) I. The siglli[ic~nce or ;lIlY st~lcmcll( or olher m~Uer required by the provisions qf till Schcdllie 10 he incilldcd in all advertisement 5hilll not be di~guised eilher through lack 01 ~n}' pnllllincilce in rCI~li(lI1 to the rell1~intlcr of the ~dvctlisement or hy lhe inclusion of m;lltcr c;dclll~lcd tOlllillilllisc thc ~ignilic~llce or the slatcment or the olher matter required 10 hc inclddcd. 2.-{1) Thc conlCilt t,f ~ ~CCUrltICS ~dvertiscll1ent and the maimer of ils prescription shall lie su~h lhilt Ihe ;"Ivcrlisemenl is 1101 likcly to be misunderstood. (2) 1\ securitics ;,dvcrliscll1cllt shall not cont~ill any statcmcnt pmporting to be a slale￾mC1l1 or fael Ih'll Ihe IIccnsce i~slling It h~s takcll nil re~sonablc slel's 10 ensure that each ~uch st;delllclll, rlftlllli~e or fo~ec"~t is not misleading ill the form or conlexl in which it appcars. (.1) 1\ sccllritics adveriiselllellt ~h~11 not conlain Bny statement, purporting to lJ~ a s("lrllleill of rnct th~t thc liccllsoe. issuing it docs not rcn~on~bly believe ~t the time, on the h~sis of cvidcnce or whicll h~·li~s ~ record ill is po"es~ion, to be trlle. (.1) Ir the sccllritic~ or sccllIitics hllsillds to which an advertisemenl relatcs is available ill liflli.ICU qll;1I1tilics. ur r"r ~ Illi,iic-iJ'fi&iiod or Oil specblterms ror rllil1l;leu period, the advcrllScfllclIl Illay S<1)' so hilI if Ihal is nol the ca~c, the advertisement sh~l1nol contain allY S(;IlCIlICllt In ",,"ler Ih;d ill'l'li~ ••.·it 'i~ so . . .... .1. -.( I) ·1 hc kfll" "f a SCUll ili~s advcltisclllcnt alld the IIl.nner of its prcscntalion shall I.c SII"h t1i;". il ;ll'i'c:,rs ,i he ·:ill :,,·I~cr'ij~cmcnt issllcu with Ihe onjcci or promoling the '-'ccllrilics. ~<:cllriti('s 1)tJ~inc~s or lirclIscc' to it relates. Jtl

Cllpital Markets al/d Securities (/fdvCftisel/lellfs) Rcgtlllltiul/s C.N. No. 15 (cull/d.) SCIIEDlJLE-(colI/d.) (2) Whcre th.: mcdium in whi<.:t. advatis':lIl<.:nl is carri<.:d contains or IHes<.:nts olh<.:r nla!tc:r .Ihe adverlisenienl ~hall be dislinguish<.:d frum that Glher mal:<.:r so that Ih<.: p"rt thai is a·n auverlisemcn: c1eally appears as such. 4. Except in Ihe case <.;fa short fonn advertisement or an im3ge :Jdvertiscmenl. thc nalure of Ihe sccurilies or se<.:uriti.:s business 10 whid: Ihe auvertiscmellt relates sh,,11 be clearly described. 5. No securities :Jdverlisemenl shall be Issucd wilh the intention not of p.:rsuading pcrsons who respond to the advertisemcnt 10 pursue Ihe subje<.:: malter of Ihe advertisemcnl but. with the intentiun insteau, of persuading Ihem to .:nl<.:r into an agr<.:cm""t. or Us" bus,ness services. of a ddoiptiull nul m.:ntio~.d ill Ih" :Jdvcniscm':IlI. 6. A securilic:s advertisement shall not cOlltai~'any' malter Ihat stllles ur impli<.:s Ihat lIlt: securities or securitit:s busines, whi<.:h is Ihe subject uf the advertise'Il"nl or any multer in the adverliscm~IlI has Ihe approval of any Government departn)"nl or of Ihe AUlhority. 7. A securities advertisemenl tha: sl"I~S -.)IllysOllle of the righls :Jnd obiig;! ions alla<.:hi"g 10 an inveslment in se<':Ulilks or oilly some uf Ih" te'llIs and conditiuns uf a seeurilies agreement shall- {a) slate surticiel~t of lhem ,0 give a fa:r view of lhc <Jatu;e I,f investment ;n see"rilie:;. of the financial eO<JlInilment un<.lert:Jken by an investor in a<':'luiring the inverslm<.:nt in securilies anu of Ih.: risks involved; anti . (b) stale how a written statement of all of Ihem can be obtained. 8. A securitie, advertisement shall not comparo or COntrasl one inv"stmen! in sc<.:uritics with an altemalive investment. or One securilies scrvi<.:e with an alternative seCll/it:cs servi,e. unless Ihe l:omparisons and contrltsls :Jre fair in relation to wh:lt is promoted and 10 the altemalive havillg re.!;:ard to .•••. hat is not staled as well as (u what is st:Jt<.:d. 9. Any Sl:curily auvertisemenl that- (a) rders to taxatiun s'liall contain.'-' warning Ihal the levels anu bases uf Iilx"tion <.:an change; (b) conlainsany mailer based un an as:lumed raie uf taxalion shall stale what Ihal rale is; (c) refers 10 reliefs from taxalion shall- (i) stale tbat lhe reliefs ard lhose thaI <':.1frenlly apply; and (ii) conlain a stalement lh"llhe Yalue of a relief from taxatiun dep<.:nds upultlhe circumstances of the lax payer. ]0. \Vhere a securities advcrtisel'lent Slales that all investor who ellters illlU "" inv<.:sl· nlcut agrccnlC'Hllo whit.:h the: cl(.!v,:rtist"ltH:nt n:lutcs \A,:i:lbc gi .•.c:) L.l1l0PPl)J lllllily In GUH:t:l the agreement. the auvcrtisement shall define the p.:riou during whi,h Ihe inveslor will have that righl anu the lime when the periou will begin. II. A securilies advenise.nelll shall not conlain infurmalion abullt Ihe past per forma lice of securiti"s investments of any description unless- (a) it is relevanl lU the performance uf Ihe secur;ti<.:S illvestment Ihe subj.:el of Ihe aUvcftlSClnell1. ~l (I» except where Ihe sour<.:e of lhe informaii~l\ is .tbe adv<.:rtiser itsdf. [he·sour<.:e of Ihe infurmall0n is slat.:d; I (c) if Ihe whole of lhe infurmaliun is not set oul- (i) whal is included is not uIHcpr.:sentalive. unfair or otherwise misleading; allu (ii) the exclusion of what is exdudcd doCs nOI have the df<.:d of exaggerating lhe suc<.:ess Or pcrformallce over lh.i ,el iod lu whicl, th<.: irnfllllllation Ihat is included ,dales; 37

(o/'ilol MorkNS {lnd Securilies (/li/vellisemenls) Regulalions ,---- ~-.--_ .._----------------------------------------- (,. /y /","'. I'; (( '-fJI/I.) SClIEDULE-(<OlIld.) (,J) if the information is prpented in the (orm o( a graph or chart. no part 'of the inforlllation is onlitted so as to give misleading impression of the rate at which variable <]uaJltities have changed; (c) in the C;lse of an advertisement of units or shares in a collective investment scheme, any comparison made between the value of an investment in those units or shares at different times is on an offer to bid hasis. that is to say, on the basis of what il "'ould have cost to acquire an amount of the units al the earlier time and what a dispmal of that amounl of those unils would have realised al Ihelatter time, and the [;lCl that is the basis o~lhe comparison is stated; •.. ~.•. - (1") Ihe pcriod which is scleelcd as illustrating pasl performance is a period of nolless than three years which period mu,t end no more than three months before Ihe (.I;,te of the issue of the advcrtisemenl; and (r.) the advertiscment contains a warning that the past is not necessarily a guide to the future. 12.-(1) II securities advertisement shall not contain any statement indicating the scale of fhe netivities or the extent of the resources of II licensee or of nny group of which the licensee is a member. so as 10 imply that the Tcsources available to supporllhe performance nf the liccnsce's obligation are greater than tbey are. (.') Staten,ents which relate to resources of memhers of a group other thanlhe licensee she,ll dcarly state that facl. 1.'.·-( 1) This paragraph appli("s to any securitics advertisement thaI is not a short form or im:'ge "dverti~en1enl. . (2) I\n auvert isement shall contain a statement, in, rycJ:'ordance with this paragraph \Y.;![!]: ill~ of thc risks inv,olveu in a<:'<JlI~ringor holding +l-.e 'sccllrities investment the subjects uf th" :I"ertisenll~nl. II I W"erethe advertisement rclates to a seCllrtltes investment in the case of which d,,:',;clions for charges nod expellses are not made uniformly throllgho,;t'th~life p(ihe inv",I,"ent hut arc not loaded disproportiunately onto the early years. the "dvert;semenl ,h,dl draw attention 10 Ihat fact and that accordingly, if the investor witlidrnws from the ;nvc'lment ih the early years, he may not get back the amount he has invested. (.1) Whcrc tlie "dVCrl;semcnt rclated to an investment tliat eln flllctuate in value in m'lIl"Y terms. the stalemcnt shall uraw attention to thaI bct :1IHI to the fact that the illv.""or may nOl get ""ck the amount he has invested. (5) Where the advertisement dlccls an investl11ellt as likely to yield a high income or '" ",it:·hle for an invcstor particnlarly seeking income from his investment, Ihe slatement ''':i1' d, ;,w alienI ion to Ihat fact that income from thc investment may nll(llIatc in value ill Ill' q;('y (('f1I1~. ((,) \Vhcre Ihe advellisement relatcs to an investment denominated in a currency other th'"1 'hat of the (oulltry in which Ihe adVertisemcnt is issued. the advertisement shall d':I" all eo lion 10 Ihe fac' that changcs in rates of exchange between currencies may cause th,' ""llIe of thc investmcnl to diminish'or to increase. , ':.'/ ("I) Whc.re the :ldvellisemcnt contcmplates the investor entering into an agreement 'Sl"'ll'hy the invcstor is re<]uircd to pay Illlsp("cified additional amounts later. the statcment sl,,'II,haw alleolion 10 the fact that the investor '"ay or, as the C:lse may he, will h;ive to 1''''' IIjpre l1Hl11CY l;llef ;ll1d thaI accordir~gly ;1"lr.ansaction in that invcshncnt can lose the ill'-T>lpf more t11:ln his first P;lYI11CIlt. ::Ill

Soli's "filX FllliJf (/~Ollis\I("/) (huu/ ,IJi i<ll JlII/!(lli .·ISiclIlIlIl.iI I){'\ ..I, 'I /I,. (/ \ II/Oil i/l/o/l) ( , SClILI JUl.I:--(I·oll/d.) pt) VJllcrc the ;llh'C(ti"ClIll"llt It.:Lltes 1(1:111ill'c:-.llllClll liI:ll i~IInl readily It..::di:-.al'I·· (a) if Ill'': in'c:-.llllCllf is IIt)( ll~h.kltnil :Ill c:-.cl!lli:;llIlIcllt SCl.:Hfiri..:s c't'-.:h;ln~··. the. II~-: 11Ic..:~(slt;dl (II;IW;lllclllioll tu the f:ILt !h;tt there is t1U cSlabli,:>l1<.:d IU:llkcl rut il',·,. JllCHI so that it Ill;')" he difli~llh fnl t!le ill'cslor 10 sell the ill\lI.':-.llllClll {lr (pr ;/!II! to oiJlain Icli:~hk illfl)lIH;Jlion ;lbout ilS ';dll~ UI Ihe exh.:nt \l( llu,: ri,l.;s lo wi, it :1.1 is cxp(}scd~ of (h). if the iu'csllllCllt is u:ukd till ;111c=,t~ddi:-.hcu ~C(tll ili,.,;. ..·x(h;II~c Ilul is d~:d; ';1 ·.I~ incgul;uly or illfrctl'".:HI\y - (i) tllat it call1iot !1C lcruin th:lt ;\ price uf ilJ:Jl ill\·L· •.•IIIIC!lt will h~ qtH)it.:d ;:1 ,:~ limc::;; ()f I ' (ii) I"'I{ is "'''>' be diflie"lllo dft-C1lf:t"S:tCli,,,,, "I :I"Y J"ice 11"'11"">' he qUlJlcd lhc st;ttClllClIl shall dl;l\, ~1l(Clllillll to tll;l{ !;..Id. 14. A ~ccllfjl:cs ;H.I'L'lti~CIIlL·lli :-.h;t1J IInr l!c~l..'lih,...ill\·'·~llI}Cll( h.-turn ;I~belli!; ill :l!; tU:lfilntcul, SC"'Uf'..:J, a:-,S\ll cd C)I pit )llli~l'd, cillh: I ~l"Xpll...·'\I1' 01 ill1J)licdly, 1I11It.::-:, (.lll..·.1, tiSCIlH..·UI lI:l> beell ;IPIH{l\lcd ill \'Iilllig I):, the A\lll:l)jit~,. Plitlf III il~ i,:~qc IS. E'l:IY scculilics :IJvcllisclncnl -- (:,) ill a P"t!liclliull :-.h:dl :-.~;tlcin 1!1t.: h:l:t~)1l1 li!;ht h;IIIJ CtHlh ...•r ,.( tilL' ~1,h·l'Ii.i')~I.' .J! thc date Oil which il \";tS lil:'.t i~","•..d: (h) hy \V;IY pi ;1 pl(l:-'pt.·ctH~, h.IPdHIH·, 11:1111111\11 01 :-.illlil.ll IH;likc'ill~ lilt.'t:lllllc· ,1· .:' sl;'lh; thc dall..: 00 wl1idl il W;IS lilSl iS~;llcd llil ei~hcr the hU1l1 Of" h~lrk ouhid •....•,.; 1 page; (c) by w~y ur a l'incm;lloglaphy lilril, video (If ll:lt:vi:-.i{IIlIJllI~lIk;asl :-;h;dlih':;11tit.' ,I 011 which it W;,IS fir:-.l i~:\I\l'd pnHuillclltly ;1( t Il~ lh.:giII ltiJig ur l.'lId \Jf llie ;I(.I'<.'11 j' .. "1' In'llcri~l. '(:/f (./ :: • 'f! td Dar eS 5al;I<lIll, <Jth JanU;lIY, lC)<)7 D, N. YON". ,Hil/':SIt'r of Slille, ["(//U·;""~ .It)r lite lillie being ,lisd/llrgil/.'; '.'/: fUIiCiioll.' of Ihe Mil/isl{'/" Jt)!· Fill(,,,, t GOVEltNMEt'lT NOTICE No. 16 published 011 1ll/I/'l7 TilE SALES TAX ACT, IlJ70 (No. U OF l')"J(,) OltOElt IHode IIl/tIO seClioll 2S( I) TilE SAI.ES TAX T/\IUIi" (HE~IISSJ()N) II:,\I(~I ../1(1('/\ 111\11.\1"1 A(;I(I("l!I.IIIIC·\1 I·, \·LI.OI'~IENI l'IlUII:!"I (,~.!I.NI).\ILNI) OIUH.Il. 1'")7 TillS Order II:1Y he ci led as IIIe Sales Tax (l<Clllissioll) (F;11I1I 1\ I; i, Babati Agricultural Devel0plIlcnt I'rlljeet (f\IIl<:lldlllclIt) (lrder. 1'/').' and shall take affeel on thc pllhlicilioll \If the Olllt.:r. .II)