Capital Markets Authority Act
- Commenced on 24 May 1996
- [This is the version of this document at 31 December 2000.]
- [Note: The version of the Act as at 31 December 2000 was revised and consolidated by the Law Reform Commission of Uganda. All subsequent amendments have been researched and applied by Laws.Africa for ULII.]
Part I – Preliminary
1. InterpretationIn this Act, unless the context otherwise requires—
2. Meaning of "associated person"
3. Definition of "interest in securities"
Part II – Capital Markets Authority
4. Establishment of the Authority
5. Functions of the authority
6. Meetings of the authority
7. Appointment of the chief executive and other staff
8. General Fund, financial year and accounts
9. Power to require production of books by a stock exchange and by certain persons
10. Action on production of books or when books are not produced
11. Order by a magistrate to search premises
12. Incriminating statements
13. Offences and penalties under sections 9, 10 and 11A person who—
14. Copies or extracts of books admissible in evidence
15. Savings for lawyersNothing in section 9, 10 or 11 shall compel an advocate to produce a document that contains privileged communication made by or to him or her in his or her professional capacity or authorise the taking of possession of any such document which is in his or her possession; but if the advocate refuses to produce the document, he or she shall nevertheless be obliged to give the name and address, if he or she knows them, of the person to whom or by or on whose behalf the communication was made.
16. Secrecy of information from books
17. Disclosure to the authority
18. Suspected breach of specified provisions
19. Investigation of certain mattersWhere the authority has reason to suspect that a person has committed an offence under this Act or the Companies Act or has been guilty of fraud or dishonesty in relation to a dealing in securities, it may make such investigation as it thinks proper under this Act.
20. Inspection by the authority
21. Power of the court to make certain orders
22. Statement of principles
Part III – Stock exchanges
23. Establishment, etc. of stock marketNo person shall establish or assist in establishing or maintain or hold himself or herself out as providing or maintaining a stock market unless it is stock market of an approved stock exchange.
24. Power of the authority to approve a stock exchange
25. Authority to approve amendments to rules
26. Stock exchange to assist the authority; disciplinary powers of the authority
27. Powers of the court to order observance or enforcement of rules of a stock exchange
28. Power of the authority to issue directions to a stock exchange
29. Power of the authority to prohibit trading in particular securities
Part IV – Licences
30. Broker or dealer’s licence
31. Broker or dealer’s representative’s licenceNo person shall act as a broker or dealer’s representative unless he or she is the holder of a licence issued under this Part.
32. Investment adviser’s licenceNo person shall act as an investment adviser or hold himself or herself out to be an investment adviser unless he or she is the holder of an investment adviser’s licence issued under this Part.
33. Investment representative’s licenceNo person shall act as an investment representative unless he or she is the holder of an investment representative’s licence under this Part.
34. Application for a licence or renewal of a licence
35. Grant of a broker or dealer’s licence or an investment adviser’s licence
36. Grant of a representative’s licenceSubject to section 34(3) and the regulations, the authority shall grant or renew a broker or dealer’s representative’s licence or investment representative’s licence if after consideration of the application it considers that the applicant will perform the duties of the holder of a broker or dealer’s representative or an investment representative’s licence efficiently, honestly and fairly.
37. False statementsA person who, in connection with an application for a licence or for the renewal of a licence, wilfully and knowingly makes a statement which is false or misleading in a material particular or wilfully omits to state any matter or thing without which the application is misleading in a material respect commits an offence and is liable on conviction to a fine not exceeding four million shillings or to imprisonment not exceeding two years or to both.
38. Power of the authority to inquire into securities transactions in relation to the holder of a licence
39. Power of the authority to impose conditions or restrictions
40. Deposit to be lodged in respect of a broker or dealer’s licence
41. Period of a licence
42. Notification of change of particularsWhere—
43. Register of licence holders
44. Revocation or suspension of a licence
45. Operation pending renewal, etc. of a licenceWhere a person who holds a licence issued under this Act has, before the expiration of the licence, applied for a renewal of the licence and it has not been issued, the licence shall, until the licence is renewed or the application for the renewal of the licence is refused or withdrawn, be taken to continue in force.
47. Exempt dealersThe following specified persons or bodies corporate shall be exempt brokers or dealers—
Part V – Register of interests in securities
48. Application of Part V
49. Register of securities
50. Notice of particulars to the authority
51. Defence to prosecution
52. Production of a register
53. Particulars of financial journalists
54. Extracts of a registerThe authority may supply a copy of the extract of a register obtained under section 52 to any person who, in the opinion of the authority, should, in the public interest, be informed of the dealing in securities disclosed in the register.
Part VI – Conduct of the securities business
55. Certain representations by a licence holder prohibited
56. Issue of contract notes
57. Certain persons to disclose interests in securities
58. Recommendations by an adviser
59. Dealings of a broker or dealer as principal
60. Dealings by employees of holders of licences
61. Broker or dealer to give priority to clients’ orders
62. Use by broker or dealer of a client’s money
63. Short selling
Part VII – Accounts and audit
64. Application of Part VII
65. Broker or dealer to keep accounting records
66. Securities documents in the custody of a broker or dealer
67. Broker or dealer’s trust account
68. Purpose for which money may be withdrawn from a trust account
69. Appointment of auditor by broker or dealer
70. Removal and registration of auditors
71. Fees and expenses of auditorsThe reasonable fees and expenses of an auditor of a broker or dealer shall be payable by the broker or dealer.
72. Broker or dealer’s account
73. Auditor to report to the authority in certain cases, etc.
74. Certain matters to be reported to the authority
76. Right of a stock exchange to impose obligations, etc. on members not affected by Part VIINothing in this Part prevents a stock exchange imposing on members of the stock exchange any obligations or requirements, being obligations or requirements consistent with this Act, that the stock exchange thinks fit with respect to—
77. Power of the court to restrain dealings with broker or dealer’s bank accountsWhere the authority shows to the satisfaction of the court—
78. Duty of a banker to make full disclosureWhere an order made under section 77 is directed to a banker, the banker shall—
79. Power of the court to make further orders to give directionsWhere an order is made under section 77, the court may, on the application of the authority or of a person affected by the order, make further orders—
80. Power of the court to make orders relating to payment of monies
Part VIII – Investor Compensation Fund
81. Establishment of the Investor Compensation Fund
Part IX – Trading in securities
82. False trading and market rigging transactions
83. Stock market manipulation
84. False or misleading statements, etc.A person commits an offence who makes a statement, or disseminates misleading information, that is false or misleading in a material particular statement, that is likely to induce the sale or purchase of securities by other persons or is likely to have the effect of raising, lowering, maintaining or stabilising the market price of securities if, when he or she makes or disseminates the information—
85. Fraudulently inducing persons to deal in securities
86. Dissemination of illegal statementsA person commits an offence who circulates or disseminates any statement to the effect that the price of any securities of a body corporate will or is likely to rise or fall or be maintained by reason of any transaction entered into or other act or thing done in relation to securities of that body corporate in contravention of any of the provisions of this Part where—
87. Employment of manipulative and deceptive devicesIt is an offence for any person directly or indirectly in connection with the purchase or sale of any securities—
88. Prohibition of dealings in securities by insiders
89. Penalties and compensation
Part X – Interim stock trading facility
90. Interim stock trading facility
Part XI – Miscellaneous
91. Restriction on use of the title "stockbroker" or "stock exchange"
92. Offences by directors or managers, etc.
93. Falsification of records by directors, employees and agentsAny director, manager, auditor, employee or agent of a stock exchange or of a broker or dealer of an investment adviser, who—
94. False reports to the authority or stock exchangeAny person who, with intent to deceive, makes or furnishes, or knowingly and wilfully authorises or permits the making or furnishing of, any false or misleading statement or report to the authority, a stock exchange or any officers of the authority relating to—
95. Immunity of the authority and its employees, etc.
96. Offences by a body corporateWhere a body corporate commits an offence under this Act, any director, executive officer, secretary or employee of the body corporate who was in any way, by act or omission, directly or indirectly, knowingly concerned in, or a party to, the commission of the offence shall also be taken to have committed the offence.
97. Power of the court to prohibit payment or transfer of monies, securities or other property
98. Injunctions and orders of mandamus
99. Offences and penalties
100. Proceedings for offences against this ActProsecution for an offence against any provision of this Act may be taken by the Director of Public Prosecutions.
102. Jurisdiction to try offences under this ActNo court inferior to a magistrate’s court over which a magistrate grade I presides shall try any offence under this Act.
103. Minister’s power to amend the ScheduleThe Minister may, by statutory order, with the approval of Parliament, amend the Schedule to this Act.
History of this document
24 May 1996