The Capital Markets Authority (CMA) has completed investigations into the KenolKobil counter, recovering a further Sh19 million of potentially illegal gains.
This further recovery is in addition to the Sh458 million recovered in March 2019 related to the larger component through No-Contest Settlement Agreements from traders whose accounts were frozen.
According to the regulator, all the recovered funds will be paid into the Investor Compensation Fund.
CMA has fully cleared Charles Field-Marsham, Chairman of Kestrel Capital East Africa of allegations against him of insider trading in relation to the takeover bid.
"Upon review of the final investigation findings and recommendations, the CMA board has resolved to initiate enforcement proceedings against Kunal Bid, a Kestrel Capital Stock Broking agent for possible insider trading worth Sh23.5 million,’’ CMA said in a statement.
The board has also released funds amounting to Sh3.8 million belonging to the last trader following a determination that he had not traded using insider information.
"Upon review of the written submissions of Charles Field-Marsham, in response to the notice to Show Cause issued to him and further investigatory findings, the Board has cleared him of potential liability for insider dealing,’’ CMA said.
The Authority constituted an Adhoc Board Committee comprising of four CMA board members and four independent persons for the sole purpose of hearing and determining allegations contained in the outstanding notices to Show Cause on the suspicious trades in KenolKobil shares.
The four independent members team included are retired Chief Justice Willy Mutunga, businessman Jim McFie, CFA society president Patricia Kiwanuka and Anne Eriksson, former country partner PWC.
