A bill to regulate the capital markets and collective investment schemes was tabled in the Rwandan Parliament last week. According to New Times newspaper, Trade and Commerce Minister Monique Nsanzabaganwa introduced the bill on 7 October.
She said a law is necessary before local companies begin full scale trading on the Rwanda securities exchange. Only companies that have embraced minimum corporate governance standards shall be allowed to be listed for trading and the law would create more investor confidence.
Rwanda currently operates as an Over-The-Counter (unregulated) market and the only share listed for trading is Kenya Commercial Bank shares, dual-listed with Nairobi and Dar Es Salaam stock exchanges and the Uganda Securities Exchange. Bonds are traded on a Rwanda bond market. However, the government plans to sell shares in some state-owned companies through the future Rwanda Stock Exchange.
The bill also proposes a Capital Markets Authority to replace the current Capital Markets Advisory Council (www.cmac.org.rw), which was established in 2007 and, in turn, set up the market. The future CMA would regulate securities exchanges and collective investment schemes, including mutual funds, unit trusts and contractual savings schemes.
Rwanda is already a member of the East African Securities Regulatory Authority. It is seeking to join the International Organization for Securities Commissions (www.iosco.org).