Regulatory Alerts2019-12-11
Capital Markets and Securities (Foreign Investors) Regulations 2003
Issued by the Tanzanian Minister for Finance under the Capital Markets and Securities Act 1994, these regulations govern foreign investors' participation in listed companies by defining eligibility, capping aggregate ownership at sixty percent, and limiting individual and institutional holdings to one and five percent respectively. The framework mandates that foreign investors deposit securities with authorized depositories, restrict their trading in government securities (except financial institutions), and require stock exchanges to submit daily trading reports while authorized depositories provide monthly custody statements to the Capital Markets Authority and Bank of Tanzania. Existing foreign shareholdings exceeding these thresholds are grandfathered, subject to prior notification and conditional sales to domestic or prescribed territory residents if Tanzanians do not absorb the offered shares.