Capital markets regulator unveils court rulings digest

The capital markets regulator has unveiled a digest of court rulings to serve as reference for listed firms, intermediaries and investors during dispute- resolution process.

The document covers court decisions on civil cases and appeals, constitutional petitions, judicial review applications, miscellaneous applications, civil suits and criminal cases for between 2008 and 2018.

Capital Markets Authority (CMA) said the digest of 27 court verdicts has been compiled by National Council for Law Reporting (Kenya Law), the publisher of Kenyan law reports.

CMA said compilation will help market players and investors “demystify some of the myths and misconceptions on the operations of capital markets”.

“The capital markets, both domestically and globally, are highly specialised and governed by distinct statutes, rules, regulations, best practices and procedures which are continuously evolving to promote market development and secure investor protection,” chief executive Paul Muthaura said.

The court rulings touch on critical broad issues such as the CMA’s jurisdictions over stock brokers, powers to appoint interim board to run a listed firm to restore confidence in investors as well as investigate and enforce actions on a listed firm.

Some of the recent investigations and enforcement actions by CMA have been challenged in cases awaiting determination.

They include a move to investigate personal bank accounts of former Mumias Sugar CEO Evans Kidero in July 2017 and that to fine former Uchumi boss Jonathan Ciano Sh5 million, in addition to other penalties, in 2016 over flawed Sh895 million rights issue floated in 2014. The latter was later overturned.