, NAIROBI, Kenya, Jul 8 – Former Kestrel Capital East Africa Chief Executive Officer, Andre Desimone, has been barred by the Capital Markets Authority (CMA) from holding public office for the next one year.
The ex-Kestrel CEO has also been handed a penalty of Sh2.5 million following his involvement in insider trading on KenolKobil shares in the period before the takeover announcement was made public in October 2018.
The recommendation was made by an ad hoc Committee that was constituted to hear and determine the allegations on the suspicious trading in KenolKobil shares and to prescribe sanctions.
“Andre Desimone has also been disqualified from holding office as a key officer of a public listed company and a licensee or in any other capacity in an approved institution of CMA,” CMA said.
He was been found guilty of disclosing price sensitive material non-public information on the KenolKobil transaction on the sale of 25 per cent Wells Petroleum shareholding to Rubis Energie and the impending takeover of KenolKobil Plc by Rubis to the two identified stock broking agents.
CMA has also disgorged Sh4.7 million from one of the stock broking agents of Kestrel East Africa – Aly Khan Satchu.
Sh23.4 million was disgorged from Kunal Bid.
Khan is guilty of receiving commissions from the trades and has now been disqualified from holding office as a key officer of a public listed company or in any other capacity in an approved institution of CMA in a period of three years.
The Committee also reversed Sh333,747 being the amount received by Bid Securities Limited from Kestrel Capital East Africa Limited and Sh14,570 being the amount received by Bid Management Consultancy Limited as the commissions from the respective trades conducted based on insider information.
“Kestrel Capital has also disgorged Sh9.8 million being the commissions earned on the transactions executed through the two stock broking agents to a no Contest Settlement Agreement,” CMA added.
In May CMA recovered Sh477 million from the investigation which was put in the Investors Compensation Fund.
One is guilty of insider trading, when in possession of privileged information which is material, price sensitive and non-public either trades in securities relying on that information, discloses the same to another person who trades based on the information and encourages someone else to trade relying on the same information for gain or to avoid a loss.
The post CMA bars ex-Kestrel CEO DeSimone from public office over KenolKobil scam » Capital News appeared first on Kenya News Alerts.