This archive report was first published on 9 July 2019.
On 24th October 2018, a week before the takeover information was made public, stockbroking officers Kunal Kamlesh and Aly Khan Satchu used insider information to trade roughly 59 million Kenol Kobil shares.
Investigations by an ad-hoc committee formed by the Capital Markets Authority (CMA) in May established that former Kestrel Chief Andre DeSimone disclosed non-public material information on Kenol Kobil's impending takeover to the stockbroking officers.
The CMA has imposed penalties on the three traders, including a fine of Kes4.69 million on Aly Khan Satchu, being the commission received from the illegal trade of Kenol Kobil shares. Satchu has also been banned from holding any key position in a listed firm or an institution licensed by the CMA for a period of three years.
Andre DeSimone, the former CEO of Kestrel Capital, has been fined Kes2.5 million and banned from holding a key position in any listed entity for 12 months. The CMA has also recovered commissions paid to Kestrel Capital and AIB Capital amounting to Kes333,747 and Kes14,596 respectively.
On his part, Kunal Kamlesh has been fined Kes23.4 million, which are the gains made by accounts under his management. He illegally traded 2,895,100 Kenol Kobil shares.
The CMA has recorded a major win in the fight against rampant financial crimes, taking firm action against the three traders and recovering millions in fines and gains made by the stockbroking agents in the illegal trade of Kenol Kobil shares.
