CMA has handed out cash fines and varying bans from holding key positions in any Capital Markets Authority (CMA) licensee against stock market trader and analyst Aly-Khan Satchu and former Kestrel Capital chief executive Andre DeSimone, who was forced to resign in the heat of the scandal, for their roles in the KenolKobil shares insider trading scandal.
Mr Satchu, the chief executive of investment advisory firm Rich Management, will pay a fine of Sh4.69 million, being the commissions he earned from the illegal trades, and serve a three-year ban after the regulator found him guilty of initiating irregular trading of the Nairobi Securities Exchange (NSE) listed KenolKobil’s shares ahead of last year’s takeover announcement by French company Rubis.
Mr. DeSimone was slapped with a cash penalty of Sh2.5 million and a one-year ban for disclosing price-sensitive, non-public information to Mr. Satchu and fellow stocks agent Kunal Bid, as Rubis bought an initial 24.99 percent stake in KenolKobil in preparation for the October takeover bid.
Both Mr. Satchu and Mr. Bid were stockbroking agents of Kestrel, acting on behalf of their customers.
“The committee has disqualified Mr. Aly-Khan Satchu from holding office as a key officer of a public listed company and/or issuer, licensee, or in any other capacity in an approved institution of CMA (including a stockbroking agent) for a period of three years from the date of the enforcement notification,” said the CMA in a notice Monday.
