Enforcement Process

Enforcement and Appeal Procedure


CMDA’s undertakes enforcement of laws & regulations as stipulated in the Enforcement and Appeal Procedure.


  • The purpose of the enforcement & appeal procedure is to;
  • Ensure effective implementation of rules and regulations.
  • Guide the staff of CMDA in taking enforcement/administrative actions.
  • Ensure consistent application of rules and regulations.
  • Provide guidelines to the market participant on how enforcement actions are taken, and the appeal procedure.

View: Summary of Enforcement Procedure

 

ENFORCEMENT METHODS


Warnings

Following any inspection or investigation, CMDA may issue a warning requiring to rectify or explain reasons for any violations

Administrative fines

CMDA may impose a fine following a serious or continuous violation of the Securities Act and any regulation made under the Act.

Suspension of license

Subsequent failures in compliance with laws & regulations may result in suspension of license as prescribed under the Securities Act.

Suspension of listing/ de-listing

CMDA may direct MSE to suspend a listing or to delist when a company is found in violation of the Regulation on Continuing Disclosure Obligations of Issuers and/or MSE Listing Rules.

Court Proceedings CMDA may bring proceedings against any licensee or any other person in breach of the Securities Act particularly in instances where damages are suffered due to the breach or violation of the Act.


Note: Any enforcement action taken may be appealed to the CMDA board within 14 days of the action being notified.