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Kenya suspends Equity Bank as stocks agent
Equity Bank CEO, James Mwangi. The bank has been suspended as a CDA (central depository agent) for a period of 14 days with effect from April 8. Photo/FILE
Posted Wednesday, April 8 2009 at 13:03
Kenya's Central Depository and Settlement Corporation (CDSC) has suspended Equity Bank as a stocks agent for two weeks, it said in a letter to stockbrokers dated Wednesday.
"Please note that Equity Bank has been suspended as a CDA (central depository agent) for a period of 14 days with effect from April 8," the CDSC letter said.
"You are therefore advised not to allocate any orders to CDS accounts held through Equity Bank during the period of suspension."
It gave no reason for the suspension, and neither Equity nor the CDSC were immediately available for comment.
Equity does not hold a stockbroking licence but it acts as an agent by trading clients' shares through licensed players.
Kenyan investors are increasingly wary of trading on the Nairobi Stock Exchange after several cases of malpractice by stockbrokers.
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Submitted by nikamifamuPosted April 08, 2009 11:07 PM
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The CMA should issue Equity Bank with a stockbrokerage license IMMEDIATELY.The current lameduck policy of bannng new licences due to CMA incapacity to regulate larger more vibrant firms is not a policy.Equity Bank should not use already governance weak stock brokers as their system weaknesses in execution of trades, limited innovation etc will be transmitted to itself.Equity Bank should instead have direct CDSC and NSE access to be able to revolutionise he market by employing world classs proven custody, brokerage. fund magement, wealth management, and private equity IT systems and a stock brokerage license