EAST
AFRICAN
SECURITIES
REGULATORY
AUTHORITIES
EASRA
PRESS RELEASE
EASRA to address trading challenges of cross listed securities
Kampala, Uganda: 23rd October, 2012….The East African Capital Markets regulators under
their regional forum- East African Securities Regulatory Authorities (EASRA), during their
36th Consultative Committee meeting held on Friday 19th October, 2012 in Dar-es-salaam,
Tanzania agreed to engage all stakeholders within the EAC capital markets to strategise on
ways to address the challenge of trading of cross listed securities. EASRA also reiterated
their focus on the development of EAC Council Directives to support the road map to legal
framework convergence and harmonisation in the region.
With corporate governance taking centre stage globally, the regulators agreed to continue
implementing the common standards on corporate governance for market intermediaries as
well as work on the development of common standards on corporate governance for listed
companies.
Recognising the increased regional activity by various capital markets participants in the
EAC, the EASRA members agreed to amend their Memorandum of Understanding (MoU) to
allow for the creation of Supervisory Colleges that would administer joint inspection
programs and investigations within regional operators, as well as coordinated surveillance
for cross listed companies, where need arises.
“Due to the lack of a common trading, clearing, settlement and depository infrastructure,
there has been minimal trading in cross listed securities”, said Japheth Katto, the Chairman
EASRA and Chief Executive Officer of Capital Markets Authority- Uganda.
“We need to address this matter urgently if investors have to benefit from a regional
market”.
Also in attendance were representatives of the Financial Sector Development and
Regionalization Project-1 (FSDRP-1) and Efficient Securities Markets Institutional
Development (ESMID), underlining EASRA’s commitment to advancing the regionalization
and development of EAC capital markets by partnering with other likeminded organizations.
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The meeting also considered and agreed on a harmonised capital adequacy framework for
capital market participants who will be operating in the regional market. Each regulator was
called upon to seek stakeholder views in their jurisdictions on the agreed harmonized
framework before a final position is taken by EASRA.
As one of the growing EAC markets, members further agreed to support Burundi in its
efforts to develop capital markets by providing technical assistance in terms of facilitating
seminars, workshops, trainings and hosting study tours and attachments of Burundian
officials.
Ends……
NOTES TO THE EDITOR
Capital Markets Authority (CMA)-Kenya, Capital Markets Authority (CMA)-Uganda and
Capital Markets and Securities Authority (CMSA)-Tanzania entered into a Memorandum of
Understanding (MoU) and also adopted a common blue print on the integration of the East
African Capital Marketsin 1997. This MoU formed the basis for the establishment of the East
African Member States Securities Regulatory Authorities (EASRA). The Capital Markets
Authority (CMA)-Rwanda later joined EASRA in 2009 and Bank of Burundi in 2011. EASRA
continues to operate as a consultative institutional forum where the Regulatory Authorities
discussmatters of mutual interest that affect their operations.
The main objectives of EASRA are:
i) Information sharing among the members;
ii) Mutual assistance and cooperation between members; and
iii) Advancing the integration of the East African capital markets
iv) Under the memorandum signed by the regulators, EASRA is mandated to;
 Develop common capital market strategies
 Harmonize capital market laws and structures
 Foster regional capital markets development
 Facilitate cross-border investments
 Develop market infrastructure
 Develop policy proposals for capital markets incentives
 Develop proposals for the alleviation of impediments
 Develop a common/similar trading system(s)
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The 36th EASRA meeting was chaired by Mr. Japheth Katto (EASRA chairman and CEO,
Capital Markets Authority- Uganda) and attended by Ms. NasamaMassinda(CEO, Capital
Markets and Securities Authority, Tanzania), Mr. Paul Muthaura (Ag. CEO, Capital Markets
Authority- Kenya), Mr. Charles Furaha (Representative of the Capital Markets AuthorityRwanda) and Mr. Joseph Bahizi, (Representative of the Bank of Burundi). Members of the
EASRA Technical committees were also present. The Consultative Committee meeting was
preceded by meetings of technical officials from 17th -18th October 2012 which deliberated
on various aspects pertaining to the integration of the capital markets in the EAC and was
hosted by the Capital Markets and Securities Authority-Tanzania.
For further information, please contact,
Joseph Lutwama
EASRA Coordinator,
Capital Markets Authority
Jubilee Insurance Center
8th Floor, 14 Parliament Avenue
P. O Box, 24565, Kampala.
Tel: +256 414 342 788/791
+256 312 264 950/1
e-mail: info@cmauganda.co.ug/jlutwama@cmauganda.co.ug
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