Capital market authority (cma), Finance Basics

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Capital Market Authority (CMA)

Was established in 1990 with an Act of Parliament to assist, in creation of a conducive environment, for growth and development of capital markets in US.

Role of CMA

1. To eliminate bottlenecks and generate awareness for investment in long term securities.

2. To serve as efficient bridge between the private and public sectors

3. Create an environment that will give confidence local companies to go public

4. To grant licenses and approvals to brokers

5. To control a compensation fund to protect investors from financial losses that must licensed brokers fail to meet their contractual obligation.

6. Act like a watchdog for the whole capital market system

7. To establish operational regulations and rules on placement of securities

8. To implement government programs and policies along with respect to the capital markets.


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