New tribunal to address capital market disputes, investor gripes

Dar es Salaam. In an effort to boost investor confidence, the government has established the Capital Markets Tribunal, designed to resolve disputes concerning stock market activities, securities regulations, and investor grievances, thereby providing legal certainty in the market.

The tribunal will exercise the full powers of a High Court and will be chaired by a High Court Judge, supported by four members with expertise in capital markets.Speaking to The Citizen in a telephone interview from Dodoma yesterday the Registrar of the Capital Market Tribunal, Mr Martin Kolikoli, said the Tribunal would play a pivotal role in achieving the goals of the National Development Vision 2050.“By managing claims rights, strengthening investments, and promoting good governance, the council can contribute to sustainable economic and social development,” Mr Kolikoli who is attending the ongoing Law Week Exhibitions in Dodoma said.The Tribunal comes at a time when the Dar es Salaam Stock Exchange (DSE) was doing well in terms of market capitalisation and traded equities despite challenges in the bond and new listings. For instance, the market capitalisation of domestically listed companies rose by 7.4 percent, reaching Sh12.24 trillion last year.The exhibitions feature a meeting with stakeholders, where the council explained the tribunal’s goals and how investors can access their rights within the stock markets. Mr Kolikoli noted that the council would introduce educational campaigns to inform investors and the public about capital markets and the tribunal’s role. Additionally, digital platforms will be established for filing claims and tracking case progress.“We believe that by implementing our mandates as outlined in the act, we can protect stakeholders’ rights by offering a platform to seek redress for misconduct, fraud, or violations of securities laws. This will build confidence among investors and stakeholders, ensuring that their interests are safeguarded and that they have a path for resolution in case of disputes,” he said.To build its capacity, the tribunal is currently in discussions with similar institutions in Canada and South Africa. These collaborations aim to ensure the tribunal operates effectively and inspires confidence among investors.He said over the next two years, the tribunal is expected to foster more dynamic capital markets, becoming a leading authority for fair and transparent securities market appeals in Sub-Saharan Africa, promoting investor confidence and upholding financial integrity.An investment analyst at Orbit Securities Company Limited, Mr Ammi Julian, expressed optimism about the tribunal’s establishment, calling it a significant step toward enhancing investor confidence and transparency.“These capital markets involve various stakeholders, especially investors. It’s crucial to assure them that their investments are secure. The tribunal will serve as a vital tool for ensuring fairness and protecting investor interests,” he emphasised.