The Capital Markets Authority (CMA) located at 5th Floor of Eco Bank Building, Avenue de la paix in Kigali Rwanda was established in 2007 as an independent agency established to regulate the operations of capital markets in the country and regulate the Rwanda Stock Exchange which is charged with trading operations in securities.
Legal regulatory frame work
Law no 01/2011 of 10/02/2011 regulates capital market in Rwanda and establishes mechanisms for controlling and supervising its activities with a view to maintaining proper standards of conduct and acceptable practices in capital markets. CMA was established by the Law no 11/2011 of 18/05/2011, establishing the Capital Market Authority (CMA) and determining its mission, powers, organisation and functioning.
Capital Market Authority
- CMA has the power to make and approve rules and regulations for the capital market as well as issue licenses and register capital market businesses and instruments.”
- CMA is mandated with promoting public awareness of the capital markets, supervise over the code of conduct and acceptable practices in the market.
- CMA is governed by a board of directors comprising of the chairman and other board members.
Functions of CMA
- Implementing the Government policy on Capital Market;
- Preparing draft policies on capital market;
- Advising Government on policy relating to the capital market;
- Promoting public awareness on the capital market and develop such market;
- Elaborating action plans and conducting studies in order for CMA to achieve its mission;
- Formulating principles and regulations for the capital market;
- Making regulations governing capital market business in accordance with the Law regulating capital market in Rwanda;
- Controlling and supervising all capital market activities with a view to maintain proper code of conduct and acceptable practices on the capital market;
- Registering capital market business and related instruments provided for by the Law regulating capital market in Rwanda;
- Issuing, suspending, and withdrawing licenses and approvals related to capital market business;
- Seeking to achieve fairness, efficiency and transparency in the functioning of the capital market;
- Protecting citizens and investors in capital market from unfair and unsound practices or practices involving fraud, deceit, cheating or manipulation;
- Monitoring, supervising, and take actions with regard to the compliance with this Law and regulations thereto related as well as with the Law regulating capital market in Rwanda and regulations thereto related;
- Co-operating and collaborating with other regulatory bodies in accordance with the provision of the Law regulating capital market in Rwanda;
- Consulting concerned organs prior to making any decision to modify principles and regulations of the profession that may have impact on the functioning of the capital market;
- Keeping adequately and timely records of decisions made in the accomplishment of CMA mission;
- Accomplishing any other mission assigned by the Law regulating capital market in Rwanda.