An investor at the Nairobi Securities Exchange. Photo/File
By John Gachiri
Genghis Capital has acquired an investment
banking licence, giving the Chase Bank-owned entity access to lucrative
transaction advisory deals.
Under recently passed Capital Markets Authority
(CMA) rules, only investment banks are allowed to advise on sales of
shares and other securities to the public, take-overs, mergers, and
acquisitions.
They can also advise on corporate restructuring,
privatisation or underwriting of securities issued or to be issued to
the public.
Stockbrokers were previously allowed to bid for the lucrative transaction advisory deals.
“The approval brings the number of investment
advisors authorised by the Capital Markets Authority to 11,” noted CMA
in a statement on Friday.
Collective scheme
Investment banks are also allowed to operate as a stockbroker or dealer.
In yet another issue of a licence last week, UAP
Group was given approval to operate a collective investment scheme, the
second such authorisation in the same week having earlier got the nod to
run real estate investment trust (REIT) management business.
In a statement, the CMA said that UAP had met all the conditions to operate a collective scheme as required by the law.
“The CMA has granted approval for registration of
UAP Investments Umbrella Scheme as a Collective Investment Scheme in
accordance with section 30 of the Capital Markets Act and Part II of the
Capital Markets (Collective Investment Schemes) Regulations, 2001,”
said the Thursday statement.
Four funds
The licence means that UAP can now pool funds from
the public and invest them in various assets. It has already created
four funds for investors to choose from.
“There are four sub-funds covered under the
approved umbrella schemes namely: UAP Enhanced Income Fund, UAP High
Yield Bond Fund, UAP Dividend Maximiser Fund and UAP Money Market Fund,”
said the statement.
UAP becomes the 17th firm to be granted the license to operate an umbrella scheme.
Centum Investment was also given a licence to operate a real estate investment trust management business last week.
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