CMA Tag

Business Type: Collective investment schemes (CIS) are entities constituted as companies, trusts, or other legal entities prescribed by the Authority to mobilize savings in financial assets and enhance access to capital markets by small investors. They include mutual funds, unit trusts, investment trusts, special funds, and other specialized collective investment schemes. CIS offer...

Business Type: Commodities brokers are companies cleared by commodity exchanges and licensed by the CMA to carry on the business of purchase or sale of commodities contracts as agents for investors or on their own account. Licensing Requirements: Must be a company limited by shares, have a chief executive officer who is fit and proper with at least five years of experience in buying,...

Business Type: Credit rating agencies provide objective and independent opinions on the general creditworthiness of issuers of debt instruments and their ability to meet obligations in a timely manner. They assess relevant risk factors including the issuer’s ability to generate cash in the future. Licensing Requirements: Must demonstrate capacity to perform the role of a rating...

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...