Stocks
CMA takes over stockbroker Discount Securities
The Capital Markets Authority on Monday took over the management of Discount Securities stock brokerage firm and invited the KPMG consultants to restructure it.
The stock broker will continue trading at the Nairobi Stock Exchange in the meantime, CMA announced at a media briefing function.
“The firm will remain open and will continue trading at the Exchange under this arrangement until such a time that the authority will determine,” said CMA chairman, Prof. Chege Waruingi.
The restructuring of Discount Securities has now forced its principal shareholders, CMA and Nairobi Stock Exchange (NSE) to find it viable third parties to invest into the company.
“During the restructuring process, should need for additional funds arise, the same will be availed within reasonable limits and in form of additional capital” said Prof. Waruingi.
Prof Waruingi has affirmed that all listed companies were still intact and none has been affected by the global meltdown. “Ironically, the low level of development of our market and its minor presence in the global context has ensured that Kenya does not suffer direct contagion effect” he said.
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