By Sharon Chweya
The Capital Markets Authority (CMA) has completed the outstanding aspects of the insider trading investigations into the KenolKobil counter.
In a statement, the authority has secured the surrender of an additional 19 million shillings of potentially illegal gains through No-Contest Settlement Agreements from an additional 5 traders whose accounts were frozen.
This further recovery is in addition to the 458 million shillings recovered in March 2019 related to the larger component of the suspicious trades identified through a total of 14 frozen accounts. All the recovered funds will be paid into the Investor Compensation Fund.
“Upon review of the final investigation findings and recommendations, the CMA Board has resolved to initiate enforcement proceedings against one more person by the name Mr. Kunal Bid, a Kestrel Capital Stock Broking Agent for possible insider trading in connection with 4 traders leading to potential illegal capital gains of 23.5 million shillings,” stated CMA.
At the same time, the CMA Board has released funds amounting to 3.8 million shillings belonging to the last trader following a determination that he had not traded using insider information.
Furthermore, upon review of the written submissions of Mr. Charles Field-Marsham in response to the Notice to Show Cause issued to him and further investigatory findings, the CMA Board has cleared Mr. Charles Field-Marsham of potential liability for insider dealing.
The Authority has constituted an Adhoc Board Committee comprising of four CMA board members and four independent persons for the sole purpose of hearing and determination of the allegations contained in the outstanding Notices to Show Cause on the suspicious trades in KenolKobil shares. The four independent members are Hon. Retired Chief Justice Willy Mutunga; Dr. Jim McFie, a respected academic and business leader; Patricia Kiwanuka, President of the CFA Society of East Africa; and Anne Eriksson, former Country, and Senior Regional Partner PWC.