Regulatory Alerts2024-01-01
Clearing and Settlement Directive 2024
Issued by the Registrar of Financial Institutions under the Securities Act, this directive establishes comprehensive standards for clearing and settling securities transactions by mandating dematerialization and a T+3 settlement cycle. It requires licensed brokers, dealers, and depositories to appoint settlement banks, submit weekly and monthly reports, issue contract notes within one day, and execute payments through designated accounts by the third trading day. The directive outlines procedures for delivery and system failures, transfers title upon settlement, and empowers the Registrar to impose monetary penalties up to K50 million or administrative sanctions for non-compliance.
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