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{
    "id": 376075,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/376075/?format=api",
    "text_counter": 415,
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    "content": "exchange, paving way for the proposed futures market to be operated by foreign operators. That is under Clause 2(k) (a) and (b). Clause 3 of the Bill defines the term “associate”. It also defines an individual as a spouse, son, adopted son, step-son, son-in-law, daughter, adopted daughter, step-daughter and daughter-in-law. This definition includes all in-laws as part of an individual. This is not necessary in the African context. This means that a person cannot be held responsible for the actions of in-laws. This amendment is trying to say that an individual will be held responsible for all the things done by his in-laws. That will be dangerous to the individual in terms of business. Section 11 of the principal Act is amended. The amendment in Clause 11(1)(d) states that while futures markets in other regimes may be operated in separate ways, participants from other related sectors are not denied participation. In South Africa, where the largest security exchange in Africa exists, they operate the equities, bonds and futures markets. It is largely self regulated and is rated the best in the world in terms of investment protection. It is less costly to have two layers as is the current position in CMA. It is proper to have powers to issue regulations, rules and guidelines with the approval of the Minister. These detailed regulations should not be in the main Act, but should be gazetted by CMA with the approval of the Cabinet Secretary responsible, in the event that they are found wanting - which is likely to be the case. The amendments come with a lot of regulations leaving no room for CMA and the Cabinet Secretary in charge to bring regulations in the market. It will be easier to amend them, but once they are in the Act, only Parliament can amend them. That is why I am saying there is so much regulation being done. The simpler the law, the easier it is to enforce and manage. When you bring a lot of regulations, companies will shy away from listing. The regulations should be simple and easy so that companies can list easily at the security exchange. Under Clause 34(a) penalties are provided for various offences. Market participants in issuance of securities should not constantly feel that they should be penalized with fines as high as Kshs30 million or be jailed for five years or both. Those proposed fines and penalties are not in line with the rest of the Kenyan law and there is danger of potential abuse. Really, Kshs30 million is on the higher side. Clause 34(b) deals with compounding of offences under the Act. The matter which this Bill purports to address can be addressed through the Penal Code. It does not need to be addressed through this Act. This is an issue that requires a lot of consultations with stakeholders, especially regarding Article 108 of the Constitution, which requires that Parliament should facilitate public participation and involvement in the legislative business of Parliament and its committees. I propose that the Committee ensures that there is enough stakeholder---"
}