Our financial markets progressing

What you need to know:

  • As a government move to have inclusion of populace to financial markets, the Bank of Uganda, acting as fiscal agent for the Government of Uganda, has sought to expand the distribution of treasury instruments to local investors.

Tolea Securities Limited through a judicial review process challenged the decision of the Capital Markets Authority (CMA) to reject the application for approval of Exchange Traded Funds (ETF) securities on the ALTX Stock Exchange in Uganda. Being the first time the Capital Markets processes were being challenged in court, it was paramount that the precedent set by the court would either curtail or propel innovation in financial markets in Uganda. The decision of the court was that the CMA wrongfully rejected the prospectus for Tolea Securities to approve the ETF Securities that Tolea sought to issue on the ALTX exchange. The court further directed CMA to evaluate Tolea’s prospectus/application through the ALTX Rules of 2016 which applied to the ETF securities.

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