Cabinet Greenlights Stock Market Establishment Bill

Dec 26 , 2020

The Council of Ministers approved the establishment of a stock market early last week, December 22, 2020. The capital market is expected to support the development of the national economy by mobilising capital, promoting financial innovation, and sharing investment risks. The stock market will be managed by a Capital Market Authority, which will report to parliament. The Authority will supervise and regulate new financial products such as bonds and stocks on the trading platform and grant licenses for the operation to securities brokers and dealers. It will be comprised of seven members, with a single member each drawn from the central bank, the Ministry of Finance, and the Office of the Attorney General, in addition to three members representing the private sector and non-governmental institutions, as well as a CEO. Disputes in the market will be handled by the formation of a Capital Market Tribunal to appeal against the decision of the Authority. Under the appointment of the Prime Minister, the Tribunal will have five members with a chairperson and a vice-chairperson. The chair and vice-chair of the Tribunal should comply with the requirements High Court judges fulfil, while the rest of the members need only have experience in law, commerce or accounting.