The legal aspect of stock market development in Ethiopia

The legal aspect of stock market development in Ethiopia, By Kamil Abdu Oumer (Id GSR/2802/04) The legal aspect of stock market development in Ethiopia Content pages 1. Introduction ………………………………………………………………………….1 2. General over view of stock markets………………………………………………….2 a. Definition …………………………………………………………………….2 b. Working procedures and purposes of stock markets …………………………5 c. Pre-conditions ……………………………………………………………….6 3. The legal aspect of stock market development in Ethiopia…………………………8 4. Conclusion ……………………………………………………….14 References 1 The legal aspect of stock market development in Ethiopia, By Kamil Abdu Oumer (Id GSR/2802/04) 1. Introduction Stock markets are markets in which stocks are traded. They can be either organized physical facilities or simply informal mediums of transactions through which company stocks can be bought and sold. The legal aspect of their development, on the other hand, encompasses the development of all laws necessary for the well-functioning of stock markets like company laws, law of securities, laws regulating stock markets themselves, competition laws, etc. Stock market development is associated with the beginning of corporate entities, particularly share companies. The 1st ever formal stock market is believed to be established in 1611 in Amsterdam following the formation of various share companies in the country. In the USA, the first stock exchange, the New York stock exchange, was established in the 18th century at Wall Street. Then, stock markets expanded to the Western Europe and Asia. In Africa, formal stock markets are post independent phenomenon. In Ethiopia, they are recently ongoing developments that they are neither organized nor well regulated. 2 The legal aspect of stock market development in Ethiopia, By Kamil Abdu Oumer (Id GSR/2802/04) In this term paper, we shall explain the concept of securities market in general and stock markets in particular and then examine the legal aspects of stock market development in Ethiopia. 5. General overview about stock markets a. Definition The term stock market is formed from two terms; stock and market. It is to mean market for stocks. So, before defining what stock market means, it is better to define what stocks are. Stocks are security devices that represent rights in publicly held companies.1 Securities, on the other hand, are documents held by a creditor as a guarantee of his right to payment and include notes, stocks, treasury stocks, bonds, debentures, etc.2 Stocks/shares are only one type of securities that represent rights of shareholders in a publicly held company. They are intangible which have no value by themselves. Unlike tangible goods which have value by themselves, stocks are created, not produced.3 Their value emanates from the law not from their material use. Then, stock markets are markets “where the trading of company stock …takes place.” 4 They are capital markets in which equity capital is raised. Conceptually, they are different from stock exchange and securities market as well as banks. 1 Kenneth Kaoma Mwenda , Legal aspects of corporate finance: the case For an emerging stock, 2000 available at http://go.warwick.ac.uk/wrap/2474 p222 2 Tikikile Kumulachew , Regulation of Initial Public Offering of Shares in Ethiopia: Critical Issues and Challenges, Addis Ababa university School of graduate studies School of law, 2011 3 ibidp11 4 History & Evolution of Stock Exchanges in India p1 3 The legal aspect of stock market development in Ethiopia, By Kamil Abdu Oumer (Id GSR/2802/04) Stocks can be sold at stock exchanges or a ‘over the counter markets. “A stock exchange is defined as any organization, association, or group of persons which constitutes, maintains, or provides a market place or facilities for bringing together purchasers and sellers of securities or for otherwise performing with respect to securities the functions commonly performed by a stock exchange as that term is generally understood, and includes the market place and the market facilities maintained by such exchange”5 Accordingly, stock exchanges have physical facilities/organizations/ legal entities/ with trading floors to organize the exchange of stocks. It provides a trading platform where buyers and sellers can meet to transact in stocks. 6 They can be organized in the form of non-profit making civil associations, public markets with no profit motive, profit making entities in the form of public enterprises, private corporations or jointly owned by the government and private entities.7 Over the counter markets, on the other hand, have no physical facility. 8They are floating markets with no fixed place of transaction. Therefore, when we talk about stock markets, we are talking about both stock exchange and over the counter markets. Security markets are conceptually wider than stock markets as securities are wider than stocks. They are facilities through which securities in general are traded.9 They are facilities “where securities are bought and sold and where information pertaining to such transactions is supplied.”10In securities market, all types of securities including stalks, bonds, debentures, treasury bills, etc can be traded. Therefore, conceptually, stock exchange is simply one form of security market. Practically, however, stock exchanges also trade securities other than stocks. 11 Macey, J., and O'Hara, M., “Regulating Exchanges and Alternative Trading Systems: A Law and Economics Perspectiv”, The Journal of Legal Studies, Vol. 28,No.1(Jan.,1999),p.21 as quoted by 6 History & Evolution of Stock Exchanges in India supra notes 4 p 15 7 Solomon Abay Yimer , Financial Market Development, Policy and Regulation: The International Experience and Ethiopia’s Need for Further Reform, dissertation 2011, available at http://dare.uva.nl/document/216843 p 166 8 Tikikile Regulation of Initial Public Offering supra notes 2 p 10 9 id 10 Kenneth Kaoma Legal aspects of corporate finance supra notes 1 p 221 11 Ibid p 193 5 4 The legal aspect of stock market development in Ethiopia, By Kamil Abdu Oumer (Id GSR/2802/04) Capital markets/security markets are also different from banks. Banks are financial markets that serve as intermediaries between savers and investors.12 Accordingly, they collect money from customers in the form of deposits and lend it for investors in the form of loans. Stock markets are on the other hand markets for capital that help a corporation raise capital from investors who shall become owners of the corporation.13 b. Working procedures and purposes of stock markets Stock markets facilitate the transaction in company stocks. They are mediums through which supply and demand for equity investment interacts.14 In case of stock exchanges, there are intermediaries/ brokers/ who may have membership seat and trade stocks on the floors of the exchange. 15 At the floor, the price of stocks is determined using auction like systems based on values that investors attaches to companies.16 Intermediaries at the stock exchange may buy stocks from companies or individual shareholders who want to sell share and make available for the public at the stock exchange or they can be delegated only as agents of the owners to sell the shares.17. By facilitating the transaction in such manners, securities markets are supposed to serve many objectives. Stock markets enables a country to increase saving and raise domestic capital for long term investment. 18 Those who buy stocks are saving their capital in the form of having shares in a company. The company on the other hand is ‘unlocking’ the cash the company has in its tangible 12 Josiah Aduda, Jacinta Mwelu Masila, Erick Nyakundi Onsongo, The Determinants of Stock Market Development: The Case for the Nairobi Stock Exchange, nternational Journal of Humanities and Social Science Vol. 2 No. 9; May 2012, available at www.ijhssnet.com p 1 13 id 14 Amir N. Licht, stock market integration in Europe, Harvard Law School Program on International Financial Systems, March 1997 p 61 15 Understanding stock markets p 27 16 Stock Market Basics, Learning Seed, 2004 available at www.learningseed.comp p 4 17 Kenneth Kaoma Legal aspects of corporate finance supra notes 1 p 233 18 Asrat Tessema, Prospects and Challenges for Developing Securities Markets in Ethiopia: An Analytical Review, Blackwell Publishing Ltd, 2003 p 50 5 The legal aspect of stock market development in Ethiopia, By Kamil Abdu Oumer (Id GSR/2802/04) assets and raising equity capital rather than relying on debt financing.19 They are also vital to attract portfolio foreign investment.20 Stock markets can also increase liquidity in a country. Accessibility of stock markets enables a company or an individual shareholder to convert their shares to cash at any time there by increasing the liquidity level in a country. 21 The existences of stock markets also play a great role for the de-concentration of ownership with in a community. 22 Stocks are divided ownership titles representing fractions of company ownership rights. By providing access to buy for any member of the society, stocks facilitate the de-centralization of ownership rights in a community. By expanding the ownership base of companies, stock markets play a great role for risk diversification. 23 Stock markets are also considered as factors for economic development. There are three views as to the relation between stock markets and economic development. One of such views is that a well-managed stock market can contribute to overall economic development of a country by encouraging saving, investment and fair distribution of income. 24 Others view stock market development as a one side product of real development.25 Finally, stock markets are viewed, by some, as non-productive at least at the lower level of economic development. 26 Accordingly, especially in case a sock market is not well managed, it can create problems related with speculations about the performance of the economy and inflation like problems. 27 19 Kenneth Kaoma Legal aspects of corporate finance supra notes 1 p 186 Josiah Aduda, the Determinants of Stock Market Development supra notes 12 p 2 21 Boopen Seetanaha, Stock Market Development and Economic Growth in Developing countries: Evidence from Panel VAR framework p 3 22 Asrat Securities Markets in Ethiopia supra notes 18 p 56 23 Solomon, Financial Market Development supra notes 7 p 136 24 Harry Garretsen¹, Robert Lensink², and Elmer Sterken , Development of Stock Markets, Societal Norms and Legal Institutions, The Netherlands, 2010 p 3 25 id 26 Tikikile Regulation of Initial Public Offering supra notes p 60 27 Charles Amo Yartey and Charles Komla Adjasi, Stock Market Development in Sub Saharan Africa: Critical Issues and Challenges, IMF working paper WP/07/209, 2007p5-7 20 6 The legal aspect of stock market development in Ethiopia, By Kamil Abdu Oumer (Id GSR/2802/04) Stock markets are also key tools for privatization of government owned enterprises. Publicly held enterprises can be converted towards share companies and shares be opened for sell to the public. In Zambia, for example, the very objective of establishing the Lusaka stock market was facilitating of privatization of public enterprises. 28 c. Pre-conditions of stock market Stock markets are simply mediums for transactions in stocks and do not stand at a vacuum. There are some pre-conditions/requirements for the existence of stock markets. Among the preconditions are market economy, appropriate legal framework and certain level of economic development. As we have seen above, stock markets trade stocks of companies so that the general public can buy shares of great corporations there by become owner of the same. For the existence of such markets, there should be an economic policy that recognizes property right and the great role the private sector can play in the economy/ market /mixed economy.29 In economies where only government is the actor, we cannot imagine stock markets. The existence of liberal economic policy by itself is not enough for the functioning of stock markets. It also demands the existence of relevant legal frame work. “…capital markets cannot flourish without an appropriate legal framework that reduces subjective decision making and encourages transparent and objective enforcement of laws and related regulatory framework. Certainty as to the working and fairness of the systems will attract more participation in financial markets and will curb interest groups that benefit from its weaknesses. Law should also build upon social and cultural factors that enjoy similar force or obedience such as customary law.”30 28 Kenneth Kaoma Legal aspects of corporate finance supra notes 1 p 54 Id 30 Dr. Jacob K. Gakeri , enhancing securities markets in sub-Saharan Africa: an overview of the legal and institutional arrangements in Kenya, International Journal of Humanities and Social Science Vol. 1 No. 9 , 2011 29 7 The legal aspect of stock market development in Ethiopia, By Kamil Abdu Oumer (Id GSR/2802/04) Legal frameworks are necessary in relation to securities, company laws which cover rules governing issuing and transfer of shares, disclosure requirements, regulation of insider dealings, laws on fraud and false representation and the operational regulation of securities market are necessary.31 In addition, there should be regulatory agencies with legally prescribed regulatory roles about transactions in stocks.32 Finally, laws on shareholders protection, competition law, legal standards about auditing and accounting professions, qualification of stock brokers, laws governing advertisement, etc are also very important.33 Some scholars also argue that certain level of economic development is also necessary for the existence of stock markets.34 For an agrarian economy in which only subsistence farming exists, there is no need of stock markets. There should, at least, be corporations capable of managing huge capitals. 6. legal aspect of stock market development in Ethiopia Before discussing the legal aspect of stock market development in Ethiopia, it is better to explain what we mean by the phrase ‘legal aspect of stock market development’. The phrase ‘legal aspect of stock market development’ denotes the development of laws and regulations related with the functioning of stock markets. These laws regulate either the market itself or other issues necessary for the very existence of the market. They, among others, include laws governing property rights, investment, issuance and transfer of securities in general and stocks in particular, company laws governing issues like disclosure requirements, insider dealings, fraud and missrepresentations, etc. The 1st ever formal stock market is believed to be established in 1611 in Amsterdam following the formation of various share companies in the country.35 In the UA, the first stock exchange, the New York stock exchange, was established in the 18th century at Wall Street.36 Then, stock 31 Asrat Securities Markets in Ethiopia supra notes 18 p 59 Charles Stock Market Development in Sub Saharan Africa: supra notes 27p 8 33 Asrat Securities Markets in Ethiopia supra notes 18 p 59 34 Dr. Jacob K. Gakeri , enhancing securities markets in sub-Saharan Africa supra notes 30 p 2 35 Solomon, Financial Market Development supra notes 7 p 127 36 id 32 8 The legal aspect of stock market development in Ethiopia, By Kamil Abdu Oumer (Id GSR/2802/04) markets expanded to the Western Europe and Asia. In Africa, formal stock markets are post independent phenomenon and, so far, there are stock exchanges in about half of African countries only.37 In Ethiopia, formal stock exchange is simply a onetime event during the imperial era that the exchange lived only for a short while.38 But, informal security markets in general and stock markets in particular have existed in the country. There are various legal developments in the country concerning stock markets starting from the imperial era to the present. In 1923, the first ever written constitution was promulgated in the history of Ethiopia. Despite its affirmation that Ethiopia; the land and the people as a whole, belongs to the emperor39, it also has recognized the right of Ethiopians by birth to acquire property.40 This is the first constitutional recognition of private property in the country. In 1933, the imperial regime came up with the 1st ever company law of the country which has provided for the establishment of share companies.41 The revised constitution of 1955 also reaffirmed the recognition of the right to property for Ethiopians. 42 In the post occupation era, the imperial regime took various legislative measures encouraging the participation of the private sector in the economy like the Business Enterprises Registration Decree No. 27 of 1957 and a number of legislations in the 1960s.431960s was a major turning point to Ethiopian legal development in general and laws related with securities market particular. In May 1960, the imperial government promulgated the commercial code. The code comes up with a number of important provisions for the development of stock markets in Ethiopia. The 37 List of African stock exchanges, From Wikipedia, the free encyclopedia Solomon, Financial Market Development supra notes 7 p 128 39 The 1923 constitution chapter 1 paragraph 2 40 The 1923 constitution article 27 41 Solomon, Financial Market Development supra notes 7 p 127 42 See article 40 of the 1955 revised constitution 43 Solomon, Financial Market Development supra notes 7 p 127 38 9 The legal aspect of stock market development in Ethiopia, By Kamil Abdu Oumer (Id GSR/2802/04) commercial code for the first time recognized operating as a stock broker as commercial activity indicating the possibility of stock market operation in the country. 44 In the company law provisions of the code, many important articles for the development of stock markets have been included. According to article 212, Share Company was recognized as one form of business organizations that can be established in Ethiopia. The code further provides detail provisions as to how Share Company is to be established. According to the commercial code, share companies can be established among founders or by public subscription.45 Whereas establishment of Share Company among founders can be possible in the absence of stock markets, establishing companies by public subscription pre-supposes the existence of securities market, be it formal or informal, in which shares are to be offered for sale. The code further requires the preparation of prospectus to inform the public about the share company to be established and make informed decision. 46 By doing so, it affirms the legitimacy of primary informal stock markets in the country; not stock exchange at it has been technically defined above. But, there is no detail legal rule about how these markets should operate. The types of shares that a share company can issue and ways how to transact with shares are also provided in the commercial code. According to article 324 of the commercial code, shares of a company can be either registered in the name of a specific share holder or to bearer as required by the shareholder. Once a person owns the shares, it can give them in pledge or usufruct. 47 A share company can also issue additional shares and may purchase itself or offer for public subscription. 48 Individual shareholders can also assign their shares freely or following some procedures the article of association or decision of extra ordinary meeting may decide. all are basic legal frame works for the development of stock market in the country. 44 Article 5(19) of the commercial code Article 316& 317 of the commercial code 46 Article 318 of the commercial code 47 Article 329 of the commercial code 48 Article 332&333 of the commercial code 49 Article 332&333 of the commercial code 45 10 49 These The legal aspect of stock market development in Ethiopia, By Kamil Abdu Oumer (Id GSR/2802/04) In 1961, the imperial government issued proclamation for the issuance of government bonds in the country. The preamble of proclamation no 20/11/1961 reads “…the development of capital market with in our empire justifies the taking of action to facilitate the issuance of government bonds in which savings and capital may be invested with full security” showing the determination of the imperial government for the development of capital markets in general. Article 2 of the proclamation gives power to the ministry of finance to issue bonds to 10 years of maturity date. Various regulations were also made in accordance with the proclamation, the 1969 bond proclamation and 1969 treasury bills proclamations that further strengthen the development of security markets in the country. The imperial regime further issued “Unfair Trade Practice Decree No 50 of 1963, an Investment Decree No. 51 of 1963, a Domestic Trade Proclamation No. 294 of 1971, a Domestic Trade License Regulation No. 413 of 1971, and a Regulation of Trade and Price Proclamation No. 301 of 1972 to further facilitate the development of trade and investment in the country.”50 In 1965, another extra ordinary move was taken in the development of stock market in Ethiopia. “A short-lived stock market started informally in the late 1950s and was formally instituted in 1965. The stock market was administered by the National Bank of Ethiopia…The government through the National Bank tried to improve resource mobilization by establishing a sharedealing group that brought together buyers and sellers to participate in an auction process. The bank laid out rudimentary rules and regulations for the auction market”51 After the down fall of the imperial regime, the rising private sector was almost totally abolished in the country. The military junta constitutionally declared that the country shall follow the socialist path. According to article 9 and 11 of the 1987 constitution, the government shall lead the economy by central planning and progressively expanding socialism in the country. The junta suspended the operation of the commercial code, nationalized private corporations and restricted the role of the private sector to a marginal/negligible level.52 Accordingly, there is no development for security markets in the country. 50 Solomon, Financial Market Development supra notes 7 p 128 Asrat Securities Markets in Ethiopia supra notes 18 p 52 52 Solomon, Financial Market Development supra notes 7 p 130 51 11 The legal aspect of stock market development in Ethiopia, By Kamil Abdu Oumer (Id GSR/2802/04) Following the overthrow of the military regime, new legislations and other measures encourage the revival of stock markets in the country. The transitional government encouraged the participation of the private sector in the country through adoption of the Transitional Period Charter, the Transitional Period Economic Policy in 1991, enactment of an Investment Proclamations in 1992 and reviving the application of the 1960 Commercial Code. 53 The post 1995 legal developments further create favorable condition for stock market development in the country. The 1995 FDRE constitutions recognized the right to private property. In addition, Market economy is legally recognized as the economic system of the country. Commercial registration and business licensing Proclamation number 687/2010, for example, provides in its preamble that “…it is necessary to create conducive environment in every field of commercial activity in line with market economic policy.” Likewise, trade practice proclamation 329/2003 also indicated in its preamble the need to make trade activities in line with market economy. Different investment legislations including proclamation 280/2002, 375/2003 and trade practice proclamation number 329/2003 are also legislated to encourage the participation of the private sector in the economy. The commercial registration and business licensing proclamation further provides special procedures for registration of share companies requiring submitting documents showing the deposition of the capital in a bank, the resolution of the meeting of subscribers, etc. 54 The last, but not the least, legal document showing the development of stock markets in the country is the proclamation for privatization of public enterprises. According to the preamble of proclamation number 146/1998, expanding the role of the private sector in the economy is important. The proclamation also provides that the privatization agency may convert a government enterprise to share companies in order to transfer it to the private sector and decide 53 54 ibid 132 Article 12 of proclamation number 686/2010 12 The legal aspect of stock market development in Ethiopia, By Kamil Abdu Oumer (Id GSR/2802/04) modalities as to how to transfer the enterprise. 55 So, privatization agency may rely on stock market for privatizing public enterprises. Despite such developments, there is huge legal gab concerning securities market in Ethiopia. First of all, there is no comprehensive legal regime governing stock markets and providing regulatory authority for security markets in general. The existing legal regimes governing stock markets are simply dispersed rules in the commercial code, the banking proclamation, civil code, etc. There is no law that expressly empowers an organization to regulate securities markets.56 The existing dispersed legal rules are also in adequate for a number of reasons. First of all, adequate disclosure of information by the issuers of stocks is one of the pre-condition for the proper function of stock markets. In Ethiopia, article 318 of the commercial code prescribes the preparation of prospectors containing information about the share company under formation when founders offer for subscription for the 1st time (primary security market). But, there is no mechanism to ascertain the accuracy of the information on the prospectus. In addition, there is no requirement for disclosure when an already established company issues stocks for sale. There is also no law concerning insider dealing57 in share companies and laws governing advertisements. 58 So far, there is no formal organized stock market/stock exchange in the country. The business community represented by the Addis Ababa chamber of commerce had provided for the government legal frame work through which a formal stock exchange can be established in Addis Ababa. But, the government shows little interest to the issue. 59 The government rather established commodity exchange. So, the security market in the country is so far an informal market and stocks are being sold at the offices of corporations issuing the stock, commercial banks, and some institutions like commercial nominees. 55 Article 5 & 7of proclamation number 146/1998 P65 57 86 58 P83 59 Solomon, Financial Market Development supra notes 7 p 131 56 13 The legal aspect of stock market development in Ethiopia, By Kamil Abdu Oumer (Id GSR/2802/04) 7. Conclusion Stock market development in Ethiopia has passed through various legal developments starting from the imperial regime to the present. But, there is no comprehensive law on securities and security markets in general and stock markets in particular so far. During the imperial era, various legislations like the 1933 company law, the 1960 commercial code, the 1961 bond proclamation, etc have paved the way for the emergence of stock market in the country. The recognition of share companies and assignment of shares under the commercial code with requirements for business registration in the business registration proclamation encourage stock market development. In the late 1965, a short lives formal stock exchange was established under the national bank. After the downfall of the imperial regime, the socialist Derg declared socialism as the governing ideology in the country. The Derg nationalized private corporations and suspended the operation of the commercial code and other laws issued by the imperial regime. Subsequent legal developments were not friendly for stock markets and stock market development in the imperial era has been totally avoided. 14 The legal aspect of stock market development in Ethiopia, By Kamil Abdu Oumer (Id GSR/2802/04) Finally, the current government is making the securities markets revive in the country by adopting market economic policy. The commercial code that was suspended during the Derg regime was put to operation and various laws concerning private investment, completion, privatization, etc are issued. Despite all these, however, stock market in Ethiopia is characterized by the absence of comprehensive and rules and regulations, organized market, professional promoters, market intermediaries and regulatory bodies. References A. Laws 1. 10. The Commercial code of the empire of Ethiopia proclamation No. 166/1960, Negarit Gazetta 19th year, No.3 2. Commercial Registration and Business Licensing Proclamation No 67/97, Negarit Gazetta, 3rdYear No. 25 3. Commercial Registration and Business Licensing Proclamation No 686/2010, Negarit Gazetta, 24rdYear No. 42 4. Commercial Registration and Licensing, Council of Ministers Regulation 13/1997 5. Proclamation to provide for the establishment of the Ethiopia Commodity exchange, proclamation NO. 550/2007, Negarit Gazeta, 13th year No 61 6. Trade Practice Proclamation No. 329/2003, Negarit Gazetta,9th Year No. 49 7. Privatization of Public Enterprises No. 146/1998, Negarit Gazeta5th year No. 26 8. Ethiopia Commodity Exchange Proclamation No. 550/2007, Negarit Gazeta 13th year No. 61 9. Investment Proclamation No. 280/2002, Negarit Gazeta, 8th year No.27 10. The 1923 constitution 11. The 1955 revised constitution 12. The 1987 constitution 13. The 1995 constitution 15 The legal aspect of stock market development in Ethiopia, By Kamil Abdu Oumer (Id GSR/2802/04) B. Books and articles 1. Boopen Seetanaha, Stock Market Development and Economic Growth in Developing countries: Evidence from Panel VAR framework 2. Stock Market Basics, Learning Seed, 2004 available at www.learningseed.com 3. Asrat Tessema, Prospects and Challenges for Developing Securities Markets in Ethiopia: An Analytical Review, Blackwell Publishing Ltd, 2003 4. Amir N. Licht, stock market integration in Europe, Harvard Law School Program on International Financial Systems, March 1997 5. Hazem Daouk, Charles M. C. Lee, David T. Ng, Capital Market Governance: How Do Security Laws Affect Market Performance? 2006 6. Charles Amo Yartey and Charles Komla Adjasi, Stock Market Development in Sub Saharan Africa: Critical Issues and Challenges, IMF working paper WP/07/209, 2007 7. Understanding the stock market, 8. Harry Garretsen¹, Robert Lensink², and Elmer Sterken , Development of Stock Markets, Societal Norms and Legal Institutions, The Netherlands, 2010 9. Kenneth Kaoma Mwenda , Legal aspects of corporate finance: the case For an emerging stock, 2000 available at http://go.warwick.ac.uk/wrap/2474 10. Solomon Abay Yimer , Financial Market Development, Policy and Regulation: The International Experience and Ethiopia’s Need for Further Reform, dissertation 2011, available at http://dare.uva.nl/document/216843 11. Josiah Aduda, Jacinta Mwelu Masila, Erick Nyakundi Onsongo, The Determinants of Stock Market Development: The Case for the Nairobi Stock Exchange, nternational Journal of Humanities and Social Science Vol. 2 No. 9; May 2012, available at www.ijhssnet.com 12. Tikikile Kumulachew , Regulation of Initial Public Offering of Shares in Ethiopia: Critical Issues and Challenges, Addis Ababa university School of graduate studies School of law, 2011 13. History & Evolution of Stock Exchanges in India 14. Dr. Jacob K. Gakeri , enhancing securities markets in sub-Saharan Africa: an overview of the legal and institutional arrangements in Kenya, International Journal of Humanities and Social Science Vol. 1 No. 9 , 2011 16