Capital markets regulators in the East African Community (EAC) plan to harmonise trading, settlement practices of cross listed stocks to facilitate investors in bid to trade such stocks.
Through their regional forum, the East African Securities Regulatory Authorities (EASRA), the regulators said strategies are underway to engage stakeholders on ways to address the challenges hindering easy trading of cross listed securities.
“We need to address this matter urgently if investors have to benefit from a regional market,” said Japheth Katto, the Chairman EASRA during a recent consultative committee meeting held in Dar-es-salaam, Tanzania.
EASRA said in a statement that there is need to focus on the development of EAC Council Directives to support the road map to legal framework convergence and harmonisation in the region.
While highlighting the importance of corporate governance, the body said it will continue implementing common standards on corporate governance for market intermediaries as well as work on the development of common standards for listed companies.
“Due to the lack of a common trading, clearing, settlement and depository infrastructure, there has been minimal trading in cross listed securities,” Katto said.
Katto, who also doubles as the Chief executive Officer of Uganda’s Capital Markets Authority, said they aim at developing common capital market strategies, harmonising capital market laws and structures.
The body also seeks to facilitate cross-border investments, and develop market infrastructure and policy proposals for capital markets incentives.
By Pierre Celestin Rutayisire, The New Times