This archive report was first published on 8 July 2019.
On July 8, 2019, the Capital Markets Authority (CMA) imposed a three-year ban on stock market trader and analyst Aly Khan Satchu from trading in the market.
The CMA also fined Satchu a total of 4.7 million shillings over the Kenol Kobil insider trading case.
Former chief of Kestrel capital, Andre Desimone, was also fined 2.5 million shillings and banned from holding a position in any listed entity for 12 months.
The CMA's investigation revealed an intricate web of stockbrokers and market dealers who lined themselves to pocket millions through illegal deals in the 36 billion shillings take-over bid of Kenol Kobil by Rubis Energie.
Senior Kenol Kobil executives, financial advisor Kestrel capital, and prominent stock dealers were involved in the web of insider trading.
Investigations showed that former Kestrel chief Andre DeSimone disclosed price-sensitive material on the Kenol Kobil transaction to Aly Khan Satchu and Kunal Bid against Capital markets rules.
The two stockbroking agents used the insider information to deal in the price-affected shares, advising and buying on behalf of their clients approximately 59 million Kenol Kobil shares in the week before the takeover announcement was made on October 24, 2018.
The CMA has imposed a financial penalty of 2.5 million shillings on Andre DeSimone and disqualified him from holding office as a key officer of a public listed company for a period of one year.
The CMA has also disgorged a total of 4.7 million shillings being the amount received by Aly Khan Satchu as commissions from the respective trades.
Satchu has been barred from holding office as a key officer of a public listed company for a period of three years.
On his part, Kunal Bid has been disgorged a total of 23.4 million shillings being gains earned by accounts under his management.
The CMA has further fined Kestrel capital a total of 9.9 million shillings being the commissions earned on the transactions executed through Mr. Bid and Ally Khan Satchu.
