Making the case for mandatory disclosure in the regulation of capital markets of developing economies: An assessment of the Ugandan legal framework

The use of mandatory disclosure requirements in the regulation of capital markets is a contentious issue. On the one hand their use is viewed as an irrelevancy that drives up the cost of issuing securities. On the other hand they are regarded as an indispensable tool that protects the rights of investors and boosts their confidence. Developing economies face the challenge of growing their fledgling capital markets by protecting investors' interests without placing onerous obligations on issuers. This thesis examines the arguments for and against mandatory disclosure. It reviews the extent to which the securities regulatory framework in Uganda provides for mandatory disclosure. It then examines factors peculiar to Uganda that affect the efficacy of a securities regulatory framework in order to come to a conclusion as to what is the optimal means of regulating the Ugandan capital market.