The Ethiopian Capital Market Authority (ECMA) has issued a public warning against Byra Share Company for illegally offering shares without regulatory approval, urging investors to avoid engaging in unauthorized securities transactions.
In its statement, the Authority revealed that Byra Share Company had been promoting the sale of shares under the slogans “I am establishing a water factory” and “Arbaminch Water.” These promotions were circulated across multiple platforms, including social media, without obtaining prior authorization from ECMA.
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The Authority confirmed that the shares being offered were not registered, making the activity a direct violation of Article 4 of the Public Offering and Trading of Securities Directive No. 1030/2017. The act also constitutes a criminal offense under Article 106 of the Capital Markets Proclamation No. 1248/2013.
ECMA further noted that distributing advertisements related to the sale of securities without prior approval breaches Article 53 of the same directive and is punishable by law.
An administrative investigation into Byra Share Company is currently underway. In the meantime, the Authority has strongly advised the public to refrain from purchasing or making any payments related to the unregistered shares.
“The company has neither registered its shares with the Authority nor obtained approval to circulate its share sale notice,” ECMA stated, warning of the risks to investors.
The Authority reiterated its commitment to strengthening market oversight and protecting investors, while also calling on the public to report any similar illegal activities.
