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CMA to pay whistleblowers up to Sh5m



The reward scheme is part of wider efforts by the CMA to tighten the noose on market cheats. FILE PHOTO | NMG


The Capital Markets Authority (CMA) will reward whistle-blowers who report market malpractices with up to Sh5 million if proposals contained in the CMA Amendment Bill 2018 are passed by Parliament.

The CMA launched a whistle-blower portal in July 2016, hoping that the public would use it to report bad apples in the capital markets.

The regulator last year admitted that it needed to put in a reward scheme after going for a year without getting tips on the portal. CMA officers are, however, not eligible for this reward.

The rewards apply to those reporting ill-gotten gains where those harmed are not specifically identifiable—recoveries of which are usually put into the investor compensation fund.

“The reward payable…shall be three per cent of the amount recovered subject to a maximum of five million shillings, and shall be paid before the recovered sums of money are transferred to the fund,” reads the Bill in part.

The amendment Bill was tabled in Parliament in July, and is awaiting the second and third readings before being signed into law.

Reports received will be forwarded to the Capital Markets Fraud Investigation Unit for an in-depth probe.

This reward scheme is part of wider efforts by the CMA to tighten the noose on market cheats, with the amendment Bill also refining the rules on front running, bringing to the fore offences of insider trading based on privileged or prior information about companies.

Although insider trading is already an offence in Kenya, there have been few reported convictions over the same in the past, which has risked the reputation of the stock market among investors.

Last month the CMA flexed its muscle in summoning independent trader and analyst Aly-Khan Satchu over suspicious trades on the KenolKobil stock days prior to the announcement of a takeover offer by French firm Rubis Energie.


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Stock markets

Jumia, Konga list billion dollars IPOs





Jumia and Konga, two major players in the e-Commerce, are creating visible excitement with eye-catching listing of their shares on the international market.

Jumia is planning an initial public offering (IPO) in New York this year which will reportedly see the business valued at $1.5 billion.

Elsewhere, Konga, Nigeria’s biggest Omni- channel e-Commerce group, is also reportedly set for a major listing on either the London Stock Exchange or New York Stock Exchange (NYSE) by the last quarter of 2020.

Konga Group is set for an initial public offering that will see the e-Commerce giant valued at about $3.2 billion, further shoring up the potential of the industry in Nigeria, Africa’s biggest market.

Investigations reveal that Mark Jessey, a prominent stock analyst on NYSE had hinted of the strong possibility of Konga IPO before the end of next year.

A move which, according to him, is a much sought-after one by investors, many of whom have followed within the last eight months the huge strides and trajectory of the business which came under new ownership after the exit of previous majority investors, Naspers and AB Kinnevik.

While Jumia’s successful listing could help MTN reduce its debt which unconfirmed reports indicate to have increased to over five billion dollars in June from about $4.1 billion at the end of 2017, Konga’s imminent IPO is one that should see the business excite a horde of potential investors, going by the current standing of the company.

Commenting on the likely listing of Konga, Chris Uwaje, Africa chair for IEEE World Internet of Things (WIoT), noted that the company has added huge value to the e-commerce landscape which should see its value gross over $3.5 billion.

“Within the last seven months, I am aware that the new owners of Konga have repositioned the company strategically and upped the overall value of the business.

Konga could claim to be unarguably the most structured e-Commerce company in Africa, with huge infrastructure and technology back-bone which is rare in Africa and which is the strength of global players such as Amazon and Alibaba.

“In valuing Konga, you must consider its strategic 360 degrees Omni-channel strategy, their Central Bank of Nigeria-licensed mini bank – KongaPay which I am sure cannot be valued anything less than $750 million and best in Africa digital logistics division known as Kxpress with a nationwide network.

“I know Konga is likely the only company that does about 90 per cent of her long haul and last mile deliveries in the continent,’’ Uwaje said.

Source: NAN

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Stock markets

Mostafa Madbouli visits Egyptian Exchange




Egypt’s Prime Minister and Minister of Housing and Development Mostafa Madbouli – Press Photo

CAIRO – 7 February 2019: The government is keen on supporting the Egyptian Stock Exchange with measures designed to boost its activity and achieve its targets, Prime Minister Mostafa Madbouli said.

It also seeks to raise the financial awareness level of the society on the basics of investment through the Stock Exchange, he said at a meeting here on Thursday with the Egyptian Exchange Board Members.

Stock Exchange Board Chairman Mohamed Farid welcomed the prime minister and said today’s visit reflects the government’s interest in the money market and in raising the trading volume at the stock exchange.

They discussed the latest performance reports concerning the Egyptian Exchange and proposals to boost the potentials of the money market to support the economic and social development plans and raise the competitiveness of the Egyptian Exchange at the regional level.

– Egypt Today

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Stock markets

EGX ends Monday on mixed note, market cap. gains LE 2.5B





CAIRO – 29 January 2019: The Egyptian Exchange (EGX) ended Monday on mixed note, and market capitalization gained LE 2.5 billion, amid Egyptian and Arab purchases.

The benchmark EGX30 hiked 0.47 percent, or 65.18 points, to close at 13,976.52 points.

The equally weighted index EGX50 rose 0.48 percent, or 10.76 points, to reach 2,243.88 points,

Meanwhile, the small and mid-cap index EGX70 stabilized at levels of 685.9 points, and the broader index EGX100 inched down 0.14 percent, or 2.38 points, to close at 1,724.82 points.

Market capitalization gained LE 2.5 billion, recording LE 785.61 billion, compared to LE 783.10 billion in Monday’s session.

The trading volume reached 218.56 million shares, traded through 29,755 transactions, with a turnover of LE 1.14 billion.

Foreign investors were net sellers at LE 147.75 million, while Egyptian and Arab investors were net buyers at LE 142.18 million and LE 5.56 million, respectively.

Egyptian, Arab and foreign individuals were net buyers at LE 39.83 million, LE 15.38 million and LE 817,719, respectively.

Arab and foreign organizations sold at LE 9.8 million and LE 148.56 million, respectively, while Egyptian organizations sold LE 102.35 million.

Sues Canal Company for Technology Settling, El Arabia Engineering Industries, and Dice Sport & Casual Wear were top gainers of the session by 9.96 percent, 9.75 percent and 8.58 percent, respectively.

Meanwhile, Obour Land for Food Industries, Wadi Kom Ombo Land Reclamation, and Orascom Construction PLC were top losers of the session by 5.16 percent, 4.71 percent, and 4.51 percent, respectively.


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