The Capital Markets Authority has secured illegal gains amounting to Sh458 million in the ongoing investigations into insider trading on KenolKobil shares.
The Authority said the surrendered funds relate to 90 per cent of the suspicious trades identified through 14 accounts that were frozen in October last year to facilitate investigations.
In a statement, CMA said it has established that a number of investors had been advised and encouraged to buy KenolKobil shares before Rubis Energie publicly declared its interest in taking over the oil marketer at a premium.
“The investigations relating to the balance of the accounts flagged in connection with suspicious trading activities are ongoing,” read the statement.
The CMA Board has further said it is initiating enforcement proceedings against top executives of a stock brokerage firm and a stockbroking agent.
“Upon review of the investigation findings and recommendations, the CMA Board has resolved to initiate enforcement proceedings against the Kestrel Capital Executive Director, Mr. Andre DeSimone, Kestrel Capital Chairman & Founder, Mr. Charles Field-Marsham, and their stockbroking agent, Mr. Aly Khan Satchu, through issuing Notices to Show Cause,” said CMA.