• Corporate Law
  • Capital Markets Law

The Insider Trading Regulatory Framework In Uganda’s Capital Markets: Challenges And Opportunities For Reform

Article by Prosscovia Nambatya


Uganda’s Capital Markets Authority Act and the Uganda Securities Exchange Insider Trading Rules prohibit the use of non-public pricesensitive information to trade, by an insider, an associate of an insider or a tippee. But this prohibition—based on the need to ensure orderly, fair and transparent trading in securities of listed entities—falls short in many respects. This article points out the loopholes in Uganda’s laws on insider trading by making comparative analyses with other jurisdictions as well as internationally applied standards. Despite the existence of capital markets in Uganda for over 20 years, the Authority and Exchange have not prosecuted any cases of insider trading—a fact that suggests either a factual absence of the vice, or an inadequacy of the legal framework coupled with inefficiency of the Exchange and the Authority’s enforcement arms. The latter is the more probable explanation, and reform is necessary.

Related Articles

Investment In Post-pandemic Uganda: Reforming Finance Leasing For Capital Formation

Kabazzi Maurice Lwanga

Leasing is an important tool of economic development. Yet Uganda’s legislative or regulatory framework is still behind times. Since the advent of the Mortgage Act no. 9 of 2008 and the Securities in Movable Property Act 2019, the economic law related to leases has received little attention. This article argues for adoption of legislative or regulatory framework to guide the judges in decision making and increase Uganda’s competitiveness for investment to promote economic growth. Importantly, it highlights the considerations for a lease agreement as apart from hire purchase and loan facility, further illustrates the inconsistent jurisprudence on the obligation to pay future installments after the termination of the lease agreement. It concludes that Uganda lacks a competitive edge in the modern economic field due to lack of regulatory enforcement on capital-incentive-law via leasing.