The Capital Markets and Securities Act (CMS Act), gives the CMSA mandate of licensing all market participants. These include securities dealers / brokers and their representatives, Nominated Advisers and their representatives, investment advisers, fund managers, custodians of securities, Central Depositories (CSD), stock exchanges and commodity exchanges. The various market players and intermediates assist investors, issuers and the public in making capital markets investments. Applications received by the Authority are broadly classified into two categories for purposes of review namely applications for new license and applications for renewal. The review of all applications is carried out in compliance with the Capital Markets Act and the Licensing Regulations issued thereunder with respect to the type of application sought by an applicant.

Statutory Provisions

Section 32 (a-e) of the Capital Markets and Securities Act as amended requires all persons intending to carry on the business of a stockbroker, dealer, investment bank, fund manager, investment adviser, and authorized depository to hold a valid license issued by the Authority. In addition, Section 10 (1) of the Capital Markets Act requires all persons intending to carry on the business of a securities exchange, registered venture capital company, collective investment scheme, central depository or credit rating agency to be approved by the Authority.