Masters Dissertations
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Browsing Masters Dissertations by Author "Beatus, Malima,"
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Item The liability of professionals in the capital market under the capital markets and securities act. CAP 79 R.E.2002: theory and practice(University of Dar es Salaam, 2007) Beatus, Malima,Investor's trust in the s' securities market is crucial to the existence of the capital markets. It is the axis which cements and maintains them. Markets suffering from want of trust of the investors will hardly survive. Those characterized by fraud, insider trading and manipulation; risk a downward spiral as investors depart in search of safe investments. Therefore, it is necessary that there be a mechanism in place to build and maintain that trust. The regulatory legal framework governing capital markets should be designed in such a way as to cultivate confidence. By so doing it offers issuers and the market the government support in their efforts to gain investor's trust in the securities industry. The capital markets being impotent of validating their own trustworthiness are also impotent of convincing the investors of their trustworthiness. The regulatory framework thus has to do this for them by imposing liability against professionals who might ruin the confidence of the entire industry. The regulation should render the industry with the stamp of good housekeeping. By so doing it implies that the law protects the investors against fraud on the market, thereby inspiring investors to enter the market. The legal framework by adopting the liability regime against all professionals in the industry for any falsification of information, declares to the investors that no loss will they incur without a remedy if it is occasioned by fraudsters in the market. It assures investors that if they were to incur any loss, then the loss is a real economic loss, for which no one has benefited on his expense.