The Capital Markets Authority (CMA) says it has completed the outstanding aspects of the insider trading investigations into the KenolKobil counter and secured the surrender of an additional Ksh 19 million of potentially illegal gains through No Contest Settlement Agreements from an additional five traders whose accounts were frozen.
This is in addition to the Ksh 458 million recovered in March this year 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 Mr Kunal Bid, a Kestrel Capital Stock Broking Agent, for possible insider trading in connection with four traders leading to potential illegal capital gains of Ksh 23.5 million,” it said in a statement.
At the same time, the CMA Board has released funds amounting to Ksh 3.8 million belonging to the last trader following a determination that he had not traded using insider information.
The CMA Board said that 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, it has cleared 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 4 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,” read the statement.
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