Capital Markets Authority bans Satchu from trading

Stock market trader and analyst Aly Khan Satchu has been banned from trading in the market for a period of three years.

The Capital Markets Authority has also fined Satchu a total of 4.7 million shillings over the Kenol Kobil insider trading.

CMA has also fined former chief of Kestrel capital Andre Desimone a total of 2.5 million shillings and banned him from holding position in any listed entity for 12 months.

When French downstream oil conglomerate Rubis Energie placed a bet on local downstream and upstream oil dealer Kenol Kobil, the offer raised the mood of the market.

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But behind the 36 billion shillings take-over bid an intricate web of stockbrokers and market dealers were lining themselves to pocket millions through illegal deals.

The web involved senior Kenol Kobil executives, financial advisor Kestrel capital and prominent stock dealers.

Investigations by a committee set up by CMA shows how former Kestrel chief Andre DeSimone disclosed price sensitive material on the Kenol Kobil transaction on the sale of the 25% Wells Petroleum shareholding in KenolKobil to Rubis Energie and the impending takeover of Kenol Kobil Plc by Rubis to Aly Khan Satchu and Mr. Kunal Bid against Capital markets rules.

The two stock broking agents thereafter used the insider information to deal in the price affected shares by advising and buying on behalf of their various clients approximately 59 million Kenol Kobil shares in the week before the takeover announcement was made on 24th October 2018.

CMA has imposed a financial penalty of 2.5M on Andre DeSimone  and has further disqualified him from holding office as a key officer of a public listed company for a period of one year.

CMA has also disgorged a total of 4.7M being the amount received by Mr. Aly Khan Satchu as commissions from the respective trades.

Satchu has also 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 23.4M being gains earned by accounts under his management.

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.

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