CMA ordered to testify in shares row

The Capital Markets Authority has been summoned to court to explain how an investor lost millions of shillings through trading of his shares by a stockbroker.

Chief executive officer Stella Kilonzo was ordered to give evidence on behalf of Mr Abdalla Salim who has sued CFC Financial Services, the stockbroker.

Mr Salim claims he bought 58,840 KenGen shares at Sh11.90 for Sh640,696 and he instructed the stock broker to sell the shares at Sh35 when the market rate was between Sh35 and Sh37.

But he says instead of selling, the company bought over 100,000 shares using his Central Depository System (CDS) account without his authority at Sh37 per share, thus generating Sh3.7 million.

He reported the matter to the anti graft body, Kenya Anti Corruption Commission (KACC), but he was advised to direct the complaint to the CMA.

Mr Salim said CMA approved the broker’s trade licence despite the complaint that made him lose over Sh1 million.