Print this page

Legal and Regulatory Framework

The Central Depositories Act lays down the legal and regulatory framework upon which the establishment and operations of CDSC are anchored.

CDSC operates under the regulatory oversight of the Capital Markets Authority. It is a limited liability company approved by the Capital Markets Authority and mandated to ensure the effectiveness and efficiency of the clearing, delivery and settlement of securities in the Kenya capital markets. In this regard, CDSC falls under the ambit of the Capital Markets Act and the Regulations and Rules thereunder.

CDSC as an integral financial market infrastructure plays a critical role for the efficient functioning of the domestic and regional financial markets. Its day-to-day management is guided by the CDS Rules. The CDSC Operational Procedures outline the detailed processes and description on how the different functions are performed. The Rules and Operational Procedures and any amendments thereon must be approved by the Capital Markets Authority.

CDSC also enters into various contractual relations with stakeholders for provision of various services. Key among these is the Agreements signed between CDSC and the CDAs as well as Agreements between CDSC and the Settlement Banks. CDSC has also entered into an Agreement with the Central Bank of Kenya through which the funds leg of all securities transaction is settled.

 

Last modified on Tuesday, 01 November 2016 19:19