Keith Kalyegira CEO of CMA

Operations of stock markets are expected to be strengthened, once the proposed Capital Markets Authority (Amendment) Bill, 2022 is enacted.

Parliament, chaired by Speaker Anita Among granted Jinja South Division East MP Nathan Igeme leave to introduce the Private Member’s Bill during plenary sitting on Wednesday, 16 November 2022.

Igeme justified that the law will clearly provide for the functions of the Capital Markets Authority (CMA) and regulate the conduct of approved persons, as opposed to regulating products and activities which is the current practice.

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“The CMA Act creates confusion in the mandate of the Authority by granting the power to make regulations, providing for fees to be charged for regulated activities in capital markets, yet the Act does not make provision for regulated activities but provides for approved and regulated persons,” Igeme said.

He added that the proposed law Incorporates objectives and principles of the International Organisation of Security Commissions (IOSCO) into the CMA.

“Uganda as a member of IOSCO has an obligation to incorporate the IOSCO objectives and principles of security regulation into its legal framework that governs the capital markets industry,” Igeme said.

The 2016 amendment, Igeme said, expanded CMA powers into prudential regulations which power are akin to the Bank of Uganda in the banking sector, without regard to IOSCO requirements to restrict such regulation by CMA.

The law also seeks to designate an approved stock exchange as the listing authority and to make provisions for a single entity to scrutinise, certify and approve prospectuses.

“The conduct of regulated entities has never been given a central focus in the regulation of securities markets,” Igeme said.  

Kazo County MP Dan Kimosho, who seconded the motion, said that the law is intended to attract many players in the capital markets by reducing restrictions in that sector.  

“Aware that many any other businesses are going down, this is one of the safest areas of investment and it would be in the interest of many Ugandans to get the opportunity to participate without restrictions,” said Kimosho.

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