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Business Type: Investment banks are full-service capital market firms that provide a wide range of services including advisory on offers of securities to the public, corporate financial restructuring, takeovers, mergers, privatization of companies, and underwriting of securities. They are non-deposit-taking institutions that can also engage in the business of stockbroking, dealing, fund...

Business Type: Authorized securities dealers are banks licensed under the Banking Act or financial institutions approved by the CMA to deal in fixed-income securities listed on the Fixed Income Securities Market Segment (FISMS) at securities exchanges. They act as market makers and dealers to enhance trading and liquidity in the fixed-income securities market and minimize counterparty...

Business Type: Fund managers are entities that manage collective investment schemes (such as unit trusts and mutual funds), registered venture capital companies, and pension funds. They pool investor funds and invest them in diversified portfolios on behalf of unitholders or shareholders. Licensing Requirements: Must be incorporated as a company, provide a detailed business plan, have...

Business Type: Investment advisers are market professionals who undertake analysis and research on capital markets securities and advise investors on such securities in return for a commission. They provide financial advice but do not handle client funds directly. Licensing Requirements: Must be incorporated as a company, provide a detailed business plan, have paid-up share capital of not...

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...