Uganda Capital Markets Authority
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Email: info@cmauganda.co.ug |Web:www.cmauganda.co.ug
Location: 8th Floor, Jubilee Insurance Centre 14 Parliament Avenue Kampala, Uganda. Postal Address: P. O. Box 24565 Kampala, Uganda.  CMA: Securities exchange ordered to refund Shs220m to investor The Uganda Securities Exchange (USE) is paying the price for a trading decision made as it was fined by the regulator, Capital Markets Authority (CMA), and ordered to refund Shs220m to an investor. CMA announced it had fined the USE for breach of rules after an investigation that has lasted more than one and half years.“In accordance with Section 99A of the CMA Act (as amended), which authorises the CMA to impose and collect penalties by way of fees against any person for breach of the Act or any regulations under it, the CMA directed the USE to refund the client (Norfund) Shs220.3m.CMA also imposed an administrative penalty of Shs19.2m on USE to be paid to the CMA,” a statement issued by the CMA reads. Read more ▪ CMA: ALTX tipped to run commodities exchange The Capital Markets Authority (CMA) has urged the trade ministry to use the newly launched ALTX Africa securities market to serve as the planned digital commodities exchange as this will expedite trade in grains and derivatives.Derivatives are financial instruments whose price is based on a product, warehouse receipts are the commonest derivative in Uganda. The value of the receipts, which can be sold, depends on the prevailing market price of maize, coffee, or beans in the warehouse.Speaking at the official launch of the ALTX at the Golf Course Hotel Kampala, Keith Kalyegira, the CMA CEO said: “I am aware that there are plans to launch a commodities exchange. The ministry of trade can use the ALTX as the commodities exchange instead of creating a new one. That means that we do not have to approve rules again.”The trade ministry entered into a public private partnership to create the Uganda National Commodities Exchange (UNCE) last year, with government, through the Uganda Development Corporation, holding a 20% stake or 200million shares. Read more ▪ CMA: Regulatory approval delays automated stock exchange This would have been the start of the first trading session for Uganda’s first automated stock exchange; however, securing approval from the regulator is taking more time. ALTX Uganda, The Capital Markets Authority (CMA), would have issued the approvals for their rules and products.At the unveiling of the board of directors for ALTX Clearing, Mr Joseph Kitamirike, one of the co-founders of the company, noted that they had moved the launch date forward.“The regulator had given us the time for the approval. They have now approved the rules and procedures required for us to launch,” he told reporters. He also anticipated that , they will be able to launch.Read more ▪ CMA to curb illicit cash flows for FIA The Financial Intelligence Authority (FIA) has signed its first joint anti-money laundering supervision deal with the Capital Markets Authority (CMA). Keith Kalyegira, the CMA boss, says the deal is a major boost to investor confidence."We have complimentary mandates. Though the Capital Markets have low risk due to stringent Know Your Customer (KYC) protocols, levels of liquidity are increasing so we need to be ready," Kalyegira said at the CMA boardroom.There are a total 16 listed companies on the Uganda Securities Exchange (USE) with shares worth over sh26 trillion. A total sh490b was traded up from sh250b.As a consequence of the deal, the CMA will regularly liaise with 'accountable persons' within the sub-sector and ensure that all large, and suspicious transactions are sufficiently vetted for money laundering and terrorist financing links.The Anti-money laundering act imposed a threshold of sh20m beyond which transactions must be reported to the Financial Intelligence Authority. Read more ▪ CMA to license investment banks The Capital Markets Authority (CMA) has embarked on a process to amend the CMA Act to enable it license investment banks as a means of enlarging the scope of products on Uganda’s capital markets and increasing the level of activity in the Ugandan economy.Investment banking will fill a void for advisory services in the Ugandan economy. This will be especially with the impending liberalisation of the pension sector and the growth of investment clubs, which will create large pools of funds that need to be profitably invested.Charles Nsamba, the acting CMA communication and investor education manager, says the word ‘bank’ shall be replaced with ‘house’.“As it is, we are in the final stages of drafting the amendments. We are working closely with First Parliamentary Council to ensure that we get it through the process as soon as possible for Parliament and the President’s approval,” he told New Vision.“Ideally, we are looking at attaining efficiency and generally attracting more players within this business,” Nsamba explains. Read more ▪ CMA to discuss funding options at oil and minerals meet The Capital Markets Authority (CMA) will make a key presentation on the opportunities for raising financing through the capital markets for the oil and gas industry.Keith Kalyegira, the chief executive officer of CMA will talk to members of the Uganda Chamber of Mines and Petroleum (UCMP) during their annual general meeting at the Kampala Sheraton. The chamber is the top lobby group for the private sector in the oil, gas and minerals industry. Uganda Chamber of Mines and Petroleum chief executive Irene Nakalyango announced that a top official from the petroleum and exploration department will also discuss the state of the oil and gas sector in Uganda at the AGM. The AGM comes exactly ahead of the annual mineral wealth conference. Read more ▪ CMA: Local SMEs set to benefit from Shs130b equity fund “Ascent will invest in 8 to 12 companies across the region. The investment size will be between $1million (about Shs2.6 billion) and $9 million (about Shs27 billion),” reads the press statement issued by the private equity player, Ascent.In an interview, Capital Market Authority chief executive officer Keith Kalyegira said: “ Anything thing that helps SMEs become better is welcome. And anyone that can help SMEs with patient capital (long term capital) is even far better.”He continued: “Private and public equity are good avenues that SMEs can take advantage of. However, the only challenge is that most of our SMEs have bad governance structures and do not pay attention to important operational details of their companies.” Mr Edgar Mutebi, a trade analyst, told the Daily Monitor yesterday that funds provided by the private equity will help SMEs that are trying to list (raise money through capital markets) but are short of the required threshold. He said: “SMEs can take advantage of the equity funds and then two years down the road they can hit the stock market for more funds.” Read more ▪ Companies operating in Uganda have been urged to embrace enterprise governance principles to enhance their reputation and boost their growth.“There are situations where owners of companies act like the board of directors and management,” said Keith Kalyegira, the CEO of the Capital Markets Authority (CMA).“Such companies end up defaulting on commercial and statutory obligations such as paying NSSF and taxes. These eventually catch up with them and some end up closing because of poor governance practices,” he added. Kalyegira was opening the third annual directors and company secretaries’ conference at Protea Hotel in Kampala.Alison Kibirige, the chair of the Institute of Chartered Secretaries and Administrators (ICSA) Uganda, stressed that there is a difference between corporate governance and enterprise governance. Kibirige said enterprise governance applies to every kind of organisation, not just companies which is the case with corporate governance. So if you run a school, hospital or faith based organisation, then you better begin thinking about this seriously,” Read more ▪  Uchumi eyes Shs168b from stock market Uchumi Supermarkets intends to accumulate Shs168 billion from the stock market through a rights issue following an approval from the Capital Markets Authority.The firm which cross-listed its shares on the Uganda and Rwanda bourses last year, is riding on the wider pool of potential investors to buy into its company with the view of funding its expansion plans.The money, according to the Uchumi chief executive officer Jonathan Ciano, will enable the firm increase its turnover in addition to funding its regional expansion plans and refurbishing the existing outlets in Kenya. “We also want to pro-actively position ourselves and be able to finance working capital for our subsidiaries with a consequent growth in market share and sales volumes,” Mr Ciano said in a statement . Read more ▪ CMA: Oil could trigger financial markets growth Uganda could see more companies list or buy shares on the Uganda Securities Exchange (USE) as the country gets closer to producing its first barrel of oil, Grace Kavuma, the board chairman of the Capital Markets Authority, has said.Speaking at Standard Chartered bank’s clients meeting for trustee services, Kavuma said the financial markets in Uganda were flat with very limited capitalisation. Only 18 companies are listed on the USE, and most of them are foreign. The Kenyan bourse has more than 45 listed companies.But with more firms coming into Uganda to invest in the oil and gas sector, the capital markets could see vibrant growth with more investors buying into listed companies. Read more ▪ |