CMA may sue stocks firm bosses
Discount Securities investors after the firm collapsed. CMA may sue the firm's bosses. Photo/FREDRICK ONYANGO
The Capital Marketing Authority (CMA) has said that it may prefer criminal charges against the fallen Discount Securities Limited once it gathers adequate evidence from those who lost their investments.
The market regulator’s fraud investigations unit, at the same time, asked investors with the troubled firm who do not know the fate of their Safaricom shares to lodge complaints with the police to facilitate the probe.
Compile evidence
“Any investor who never got his refunds and has never received any information regarding their shares should bring their evidence to the police to enable us finalise investigations,” said officer in charge Prosper Bosire.
He said they intend to prefer criminal charges against Discount Securities bosses once they compile all evidence from investors adding that no money invested in the stock market via the firm would be lost.
CMA, he said, had helped Kenyans recover Sh7 million from other brokerage firms after complaints were lodged and investigations launched into the alleged fraudulent trading in shares.
He said the role of the unit is to instill discipline within the industry and that anyone found to be fiddling with investors’ money is to be dealt with according to the law.
Fully briefed
Mr Bosire said he was visiting all areas where the collapsed firm had offices adding that divisional criminal investigations officers had been fully briefed on what to look for.
He spoke on a visit to Nyahururu Town to meet locals who bought Safaricom shares via DSL and have never been informed of the fate of their stocks.
Mr Bosire said that CMA would ensure that public confidence is restored within the market.
Address matter
Discount which has been under receivership for the last six months and has been transferring shares to other stocks brokers although the process has been marred by confusion after it closed its up country offices.
CMA had promised to address the matter by opening upcountry registration centres but is to date yet to live up to it.
