Title: Capital Market Proclamation No.1248/2021

Scope of Application: National

Type of law: Proclamation

Abstract: Laws governing for mobilization of capital and subsequent trading of securities has been long awaited by business community and investors who otherwise find it difficult to mobilize capital and trade shares in secondary market to create anticipated liquidity.  In response to this overdue problem, Ethiopia law makers has ratified Capital Market Proclamation No. 1248/2021, which is effective since July 23, 2021. As it is the first law post 1993 period, the Law is comprehensive in its scope covering establishment of regulatory body (Capital Market Authority), establishment of capital market (Security exchange, and other complimentary companies that facilitate operation of the exchange/es such as securities depository and clearing company, licensing of capital market service providers (brokerage, investment advice, underwriting, fund management, etc.), establishment of capital market tribunal ( in case of trade related disputes), and others.

Key words: Capital market authority; securities exchange (Ethiopian security exchange, Trading platform); securities depository and clearing company (Custody and record keeping, clearing and settlement, ownership transfer, bankruptcy proceeding, Liquidators, government securities); Public offering; Licensing of capital market service providers; Capital market tribunal; Disclosure of interests; Acquisition and protection of minority interests; Collective investment schemes; prohibited trading practices; Compensation fund

Entry into Force: July 23, 2021

Repeals: Article 2 Sub-Article (4) and Article 4 Sub-Article (1) paragraph (b) of the National Payment System Proclamation No. 718/2011

Amended by: —

Implemented by: —

Repealed? No

Language: Amharic and English