Regulation of Equity Markets in Uganda: The Role of the Capital Market Authority in Investor Protection

TABLE OF CONTENTS

DECLARATION ....................................................................................................................................... i

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DEDICATION .................. ::: ...... :: .. : ..... ~.'.: ......... : ...................... :· .. :.: ..... >.~~ ............................................... ii

ACKNOWLEDGMENTS ........................................................................................................................ iii

TABLE OF CONTENTS ......................................................................................................................... iv

LISTS OF ACTS AND REGULATIONS ............................................................................................. viii

LIST OF CASES ...................................................................................................................................... ix

ACRONYMS ............................................................................................................................................ X

ABSTRACT ............................................................................................................................................. xi - ~, ·::. ·~ ..

CHAPTER ONE ........................................................................................................................... 1

GENERAL INTRODUCTION ..................................................................................................... !

1. I Background: ........................................................................................................................................ 1

1.2 State1nent of the Proble1n: ................................................................................................................... 4

1.3 Hypothesis: .......................................................................................................................................... 4

1.4 Objectives of the Study: ...................................................................................................................... 5

1.5 Scope oftl1e Sttidy: ............................................................................................................... :: .. · ..... 1

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1 .5.1 Geographical Scope ......................................................................................................................... 6

1.6 Significance ofthe Study: ................................................................................................................... 6

1.7 Research questions: ............................................................................................................................. 7

1.8 Justification for the Study: .................................................................................................................. 7

1.9 Literature review ................................................................................................................................. 8

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I. I 0 Methodology ................................................................................................................................... 13

I .1 0. I Research design ............................................................................................................................ 13

I. I 0.2 Data collection ············:·········:···················································_:····.··················:·:···:······;.;,;: ..... , .. : .. 13 _,_,·

·- 9- .... • - :'h1.1 0.3 Area of study ................................................................................................................................ 14

I .I 0.4 Qualitative analysis ...................................................................................................................... 14

1. I 0.5Limitations to the Study ................................................................................................................ 14

CHAPTER TWO ........................................................................................................................ 15

REGULATION OF CAPITAL MARKET IN UGANDA ............................................................ 15

2.1 Introduction ....................................................................................................................................... 15

2.2 Duty of CMA .................. ., ................................................................... _. ............ : ...•.. ~ ... ,. ..... :~ . .' .... .':~ .... 16 ~-·. -\ ·~ ~ - ::~

2.3 The practice of insider trading .......................................................................................................... 16

2.4 Prospectus ......................................................................................................................................... 19

2.5 Conclusion ........................................................................................................................................ 22

CHAPTER THREE .................................................................................................................... 23

MODALITIES OF ISSUING SHARES TO THE PUBLIC ......................................................... 23

3. I Introduction ....................................................................................................................................... 23

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3.2 Guiding the financial pl_fttfon1.1 .,_.:.:, ... , ......... , .......... ,, ........................ :...j';:. ............ ~ ..• : .. ~ ... : ...... :~' ...... :: ..... 24

3.3 E1npowering of the CMA .................................................................................................................. 25

3.4 Benefits of floatation to the company ............................................................................................... 26

3.5 Disadvantages ................................................................................................................................... 26

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