Stockbrokers withdraw threat to suspend trading at NSE
Pan Africa Insurance’s share price gained the most last week despite reporting a decline in profit after tax for the full year 2014. FILE PHOTO | NATION MEDIA GROUP
What you need to know:
- Kasib said it had decided to rescind its plans to suspend trading at the NSE for the sake of maintaining “sanctity and stability” in the capital markets.
- CMA spokesperson Anthony Mwangi said the brokers have no powers to unilaterally suspend trading at the exchange, saying the mandate lies with the regulator.
- Thursday, the CMA sought to forestall a crisis at the exchange after stockbrokers threatened to suspend trading beginning Friday.
- The regulator had threatened to slap brokers with unspecified penalties had they gone ahead to suspend trading.
Stockbrokers have withdrawn their threat to suspend trading at the Nairobi Securities Exchange for one month until a stalemate surrounding the capital gains tax on equities is resolved.
The council of the Kenya Association of Stockbrokers and Investment Banks (Kasib) said it had decided to rescind its plans to suspend trading at the NSE for the sake of maintaining “sanctity and stability” in the capital markets.
“Following consultations, and in the interest of maintaining the sanctity and stability of the capital markets in Kenya, the Council of Kasib has further resolved that they shall not suspend trading services and that the Exchange shall operate as normal on February 20, 2015,” the brokers said.
Capital Markets Authority (CMA) spokesman Anthony Mwangi told the Nation by phone that the brokers have no powers to unilaterally suspend trading at the exchange, saying the mandate lies with the regulator.
On Thursday, the CMA sought to forestall a crisis at the exchange after stockbrokers threatened to suspend trading from Friday following a stalemate that has pitted them against the Kenya Revenue Authority regarding the onus for collecting and remitting the capital gains tax.
The regulator had threatened to slap brokers with unspecified penalties had they gone ahead to suspend trading.
The Kasib council had earlier on Thursday issued a statement saying the stockbrokers would suspend trading from today until March 18, pending a High Court ruling on whether stockbrokers should collect and remit the tax.
