ECMA's Director General Brook Taye

ECMA Enforces Directive Regulating Capital Market Service Providers

ADDIS ABABA – Ethiopian Capital Market Authority (ECMA) has issued its first comprehensive legislation that will regulate capital market service providers in the country.

The legislative, entitled ‘Capital Market Service Providers Licensing and Supervision Directive No. 980/2024’, has become effective as of today, Jan 18, 2024.

The directive is the first of many in the pipeline by the Ethiopian Capital Market Authority.

Its Director General Brook Taye said this directive “ is a significant milestone in the development of the capital market” in Ethiopia.

“It provides a comprehensive legal framework that will help to ensure the integrity and stability of the capital market, while also promoting investor protection and market transparency,” Brook added.

The directive outlines detailed regulations on capital market activities requiring a license, the prerequisites for obtaining a license, and the responsibilities and obligations of licensed service providers.

The authority says there will be 15 different types of licenses available within the framework. These licenses will be issued to capital market service providers who meet the prerequisites outlined in the directive.

ECMA which will be responsible for supervising and regulating the activities of these licensed service providers, says it is finalizing its activities for the commencement of the capital market in the country.

The Ethiopian Security Exchange (ESX) is expected to start operating in the third quarter of the current fiscal year.