Competition and Fair Trading Commission to regulate the stock market
The Competition and Fair Trading Commission (CFTC) has been given a new mandate to assess all offers for takeover, acquisition or exchange ownership of shares on the stock market.
This follows the decision by government to designate CFTC as a panel on takeovers and mergers in line with the Companies Act of 2013.
This means it has now become an offense for any party seeking to acquire or exchange ownership of shares on the stock market to do so without first seeking authorisation from the panel.
“CFTC has been given a mandate to regulate takeover bids, merger transactions and any other transactions that may have an effect on the ownership or control of companies, whether directly or indirectly.
“This will ensure that there is fair and equal treatment of all shareholders in a target company and to ensure that shareholders are not denied an opportunity to make an informed decision on the merits of an offer,” CFTC said in a statement signed by its Executive Director Wezi Malonda.
CFTC has since advised all investors wishing to acquire or exchange ownership of shares on the stock market to seek authorisation from the panel before proceeding with takeover bids on shares.