Sylvia Juuko
5 July 2009
Kampala — THE Capital Markets Authority (CMA) has suspended ReNaissance Capital for two months over failure to meet statutory requirements of capital adequacy and book keeping.
Japheth Katto, the head of CMA, said in an interview over the weekend that ReNaissance will not be allowed to transact business as a fund manager, investment advisor and broker/dealer during the suspension period.
"Effective Monday, July 6, ReNaissance will not be trading on the stock exchange. The transactions they have undertaken will be settled but they will not place new transactions on any new customers," Katto explained.
He said compliance breaches included the failure to adhere to capital requirements, in which firm's share capital should not fall below sh150m.
"The rules and regulation stipulate that a company has to maintain a share capital of not less than sh150m and because of losses, they have not been able to maintain that. Within this period of suspension, they should sort out the capital requirements." The firm is owned by the Zimbabwe-based ReNaissance Financial Holdings, which Katto said had undertaken to recapitalise the entity.
He downplayed the impact of the closure on an already depressed market.
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