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{
    "id": 862707,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/862707/?format=api",
    "text_counter": 376,
    "type": "speech",
    "speaker_name": "Garissa Township, JP",
    "speaker_title": "Hon Aden Duale",
    "speaker": {
        "id": 15,
        "legal_name": "Aden Bare Duale",
        "slug": "aden-duale"
    },
    "content": "Clause 8 of the Bill proposes to provide the Authority with the power to address any financial disclosure. It was not there before. All those listed in the stock exchange will now be required to make financial disclosure. They must disclose their accounting procedures. If they are involved in fraud one way or another, that makes them lose investor protection. Clauses 9 and 10, which are amongst the last clauses of the Bill, propose to introduce new Sections 31JA and 32KA respectively in the Capital Markets Act in order to create certain offences like front running and obtaining gain by fraud. Front running is an offence by market intermediaries where a stock broker or a dealer conducts prior security purchase transactions in order to take advantage of the clients’ order. That is with regard to brokers and how they behave before listing takes place. So, the new sections introduce certain specific offences. We have seen several instances where market intermediaries collude with external firms outside our country, and with private individuals. They make prior purchases and then subject the same securities as disposed of to another purchasing. Such are not transparent transactions. Finally, Clause 11 of the Bill seeks to clarify matters that may be presented to the Capital Markets Tribunal for determination. I am sure that the Chair of the Departmental Committee on Finance and National Planning, Hon. Limo, has engaged with the Capital Markets Authority, the National Treasury and other stakeholders in the financial sector and listed companies to give us views of the stakeholders when public participation was conducted. I beg to move and ask Hon. Limo to second. The electronic version of the Official Hansard Report is for information purposes only. Acertified version of this Report can be obtained from the Hansard Editor."
}