The Capital Markets Authority (CMA) wants to completely transform transactions in shares and bonds into electronic (e-mobile platforms) meaning clients would be able to use phones for registration, trading, and receiving cash without having to physically show up at a stockbroker or the Central Bank of Kenya (CBK) for registration as investors or to transact and get paid.
Currently, to register for transacting any bonds -even the mobile-based bond trading- Kenyans would have to physically appear at the initial point with a considerable amount of paperwork.
The move is inspired by the recent Covid-19 pandemic where many people are confined to their homes and have difficulty carrying out stock market transactions without meeting brokers or investment advisers.
“It may be the right time to start thinking about completely transforming capital markets transactions into e-mobile where clients are on-boarded, trade and receive cash through their mobile handsets,” said CMA’s Capital Markets Soundness report.
The CMA also wants online annual general meetings (e-AGMs) for capital market players implemented.
“There is a need to explore the viability of Electronic Annual General Meetings (e-AGMs) for capital market intermediaries in Kenya. This concept can be tested in the CMA regulatory sandbox to inform future approach,” Soundness report.
The report also recommended listed companies adopt business continuity measures as well as include effects of the Covid-19 in business plans and projections.