Calibrating regulatory disclosure in Kenya’s securities markets: challenges and opportunities for investors
Abstract
nvestor protection is
incontrovertibly
one of the hallmarks of
deep
and vibrant securities markets. Effective
investor protection mechanisms play an
indispensable
role in
bolstering investor confidence
and retention. This
paper argues that although
the
di
sclosure
philosophy
is the most ubiquitous investor protection mechanism
in
many jurisdictions
and
boasts of innumerable
advantages including simplicity, its
effective
nes
s in developing
securities
markets is severely circumscribed by
prevailing
market
real
ities. With
exceedingly
low levels of
financial literacy
and
a multiplicity of
other
challenges,
most
retail
investors are incapable of accessi
ng the
potential
benefits of this internationally acclaimed investor protection device
.
Relatedly, the language and
methodology of disclosure
is
predominantly non local and exceptionally sophisticated.
The need to review
and
domesticate
the
various precepts of disclosure cannot be gainsaid
Citation
Gakeri, Jacob K(2014). Calibrating regulatory disclosure in Kenya’s securities markets: challenges and opportunities for investors. International journal of humanities and social science, 4(5); pp. 133-145Publisher
University of Nairobi