Ethiopia’s capital market regulator announced on Monday that it has registered a new directive that will provide a legal framework for licensing and supervising capital market service providers.
The Ethiopian Capital Market Authority (ECMA) said the directive, which took effect on Monday, is the first of many in the pipeline and will outline detailed regulations on capital market activities requiring a license, the prerequisites for obtaining a license, and the responsibilities and obligations of licensed service providers.
The directive will also help to ensure the integrity and stability of the capital market, while also promoting investor protection and market transparency, according to the ECMA.
“This directive is a significant milestone in the development of the capital market in Ethiopia,” said Dr. Brook Taye, the Director General of the ECMA, in a press release. “It provides a comprehensive legal framework that will help to foster a conducive environment for capital market development and growth.”
The ECMA said there will be 15 different types of licenses available within the framework, ranging from securities dealers and brokers to investment advisers and fund managers. The licenses will be issued to capital market service providers who meet the prerequisites outlined in the directive. The ECMA will also be responsible for supervising and regulating the activities of these licensed service providers.
The ECMA is finalizing its activities for the commencement of the capital market in Ethiopia and looks forward to working with all stakeholders to achieve this goal, the press release said.