A company blacklisted by Kenya’s Capital Markets Authority is challenging the decision arguing it was illegal as it has always been an investment advisor and not stock broker.
Through its general manager Robert Gachathi, in an affidavit filed in court, Tsavo securities said it is a licensed investment advisor contrary to assumption by CMA that it was a stock broker. As such, CMA unlawfully imposed ban on Tsavo securities, he said.
The CMA banned the trader from the market as it conducted investigations into alleged theft of three bonds.
The reason for the ban imposed by CMA was necessitated by claims that Tsavo blocked investigations by refusing to disclose transaction details of suspect deals that were allegedly executed.
On the other hand, former Tsavo boss Fred Mweni claimed that CMA was forcing him to give confidential client information.
The court papers reveal that CMA asked for information on transactions relating to the trading of three bonds identified as FXD 1/2012/5, FXD 4/2011/12 and FB 1/2011/12.
The regulator asked for summary of all bonds owned by Tsavo Securities as at August 31, 2012 and all bonds transacted by the company in the same month and commissions earned from the trades.
– Source ; The star,Court Fillings
