Business Law

Business Type: Stockbrokers buy and sell securities on behalf of clients at securities exchanges in return for brokerage commissions. Stock dealers carry on the business of buying, selling, dealing, trading, underwriting, or retailing securities as principals (on their own behalf). Licensing Requirements – Stockbrokers: Must be incorporated as a company, provide a detailed business...

Business Type: A derivatives broker is a corporate body admitted to the membership of a derivatives exchange and authorized by the CMA to trade in derivatives contracts as an agent for investors (earning commissions) and on its own account. This category is a sub-category of market participants at exchanges like the NSE. Licensing Requirements: Must be incorporated as a company, have a...

Business Type: A derivatives exchange is a securities exchange licensed to list exchange-traded derivatives contracts such as futures, options, and swaps. These platforms facilitate risk management and speculation in financial markets. Regulated under the Capital Markets (Derivatives Markets) Regulations, 2015. Licensing Requirements: Applicants must provide copies of memorandum and...

Business Type: A commodities exchange is a licensed platform for spot commodity trading, including clearing, settlement, and transfer services. These exchanges facilitate the trading of agricultural products, metals, energy, and other physical commodities. Regulated under the Capital Markets Act and the Capital Markets (Commodities Markets) Regulations, 2020. Licensing Requirements: Key...

Business Type: A central securities depository (CSD) is an entity that holds securities in electronic form, facilitates the transfer of ownership, and provides clearing and settlement services for securities transactions. It is established under the Central Depositories Act, 2013. Licensing Requirements: The applicant must be a company incorporated under the Companies Act with the...

Business Type: Securities exchanges are regulated markets or platforms where securities are offered for sale, purchase, or exchange, including any clearing, settlement, or transfer services. The primary example is the Nairobi Securities Exchange (NSE), which facilitates the trading of equities, bonds, and other financial instruments. Licensing Requirements: Applicants must be incorporated...

I IntroductionThis advisory seeks to examine whether the mere inclusion of “Terms & Conditions” or a reference such as “Terms & Conditions website.com” on a receipt is legally sufficient to bind the parties to the provisions therein, or whether the complete text of the terms must be incorporated within the document. Terms & Conditions may be defined as special or general...

Introduction Private Equity invests in already existing private companies not listed in the stock exchange that are either promising companies in need of growth and expansion or those in need of ‘repair’. This is done by having a pool of investors investing in a fund; contributes to the fund and buy out the company whereby some changes are made such as change in strategy in reliance on the...

What Is Sustainability-Linked Loans (SLLs)? Sustainability-Linked Loans (SLLs) are a form of financing where the borrower’s cost of capital is tied to their achievement of predefined Sustainability Performance Targets (SPTs). Unlike green or social loans whose use of proceeds must be earmarked for eligible projects, SLLs can be used for general corporate purposes, provided the...

The Green Loan Principles (GLPs) are a set of voluntary and recommended guidelines that establish a framework for loan instruments exclusively designated to finance or re-finance “Green Projects.” GLPs’ defining legal characteristic is the strict application of its proceeds for environmentally beneficial purposes. The GLPs are structured around four core components, which serve as...