Capital markets regulator unveils application timelines

The Capital Markets Authority (CMA) has disclosed detailed timelines for processing applications at a time the market has seen an increase in licences for issuing securities and allowing new players.

In the past one year, the number of applications for issuing corporate bonds, rights, licensing of real estate investment trusts (Reits) managers and intermediaries has gone up as the market introduces new products.

The regulator normally remains tight-lipped over the progress of approval for applications, only making announcements upon completion of the process.

“The Authority’s Service Charter provides that an applicant has a right to receive a response from the authority within 14 working days from the date of receipt of an application or supplemental documentation in support of such an application,” said the CMA in the notice published on its website.

“The authority shall proceed to close applications that remain pending for a period of more than three months from the date of the authority’s communication of outstanding issues in respect of the application or where highlighted issues remain unaddressed.”

The regulator said it is committed to meeting the issued timelines as per its 2014-2015 performance contact with the government.

The CMA says in the public notice that approval for new issues of securities and private transfers take 14 working days. Licensing approvals will be issued within 25 working days so long as all requirements have been met, the CMA notice says.

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The subsequent issuance of securities and corporate actions covering additional shares, bonus issues, share splits, shareholders circulars, disclosure documentation relating to takeovers and mergers, issue of additional employee share options stock and approval of stock broking agreements take seven working days to approve.

The shortest approval period is that of announcements, advertisements and marketing materials, which is done within a day.

A State bank had raised concerns over the duration it was taking to get approval of its Sh10 billion rights issue last year, with the lender saying it had cleared all the pending issues.

The CMA says the timelines have not changed, although the new public notice gives more details than what is contained in the regulator’s service charter.

The announcement comes ahead of expected applications for participation in the derivatives market, which the Nairobi Securities Exchange has been given licence to operate.

The exchange has, however, been allowed to approve listings on the Growth Enterprise Market Segment, which saw three new entrants last year.