Stockbroker Aly-Khan Satchu has been barred from trading and holding any key office in a listed firm for three years.
Aly Khan, or Mr Satchu as he’s popularly known, was indicted by the Capital Markets Authority for possible insider trading in the KenolKobil take over by French firm Rubis Energie.
Aly Khan, Andre DeSimone the former CEO and Executive Director Kestrel Capital and Kunal Kamlesh Somchand Bid have been under investigation by the CMA.
“CMA established that Andre DeSimone disclosed price sensitive non-public information on the Kenol Kobil transaction on the sale of the 24.99% Wells Petroleum shareholding in KenolKobil to Rubis Energie SAS (Rubis) and the impending takeover to the two identified stock broking agents,” says the authority in its ruling.
CMA has imposed on DeSimone a penalty of Ksh.2.5 million and has further disqualified him from holding office as a key officer of a listed company or issuer, licensee or in any other capacity in an approved institution of CMA for a period of one year.
In February, CMA revealed a WhatsApp message from Mr. Satchu linking him to insider trading of KenolKobil shares ahead of the takeover announcement.
The bombshell came after CMA confiscated his phone on January 16 when investigations started.
They told court that he tipped off investors to buy huge amounts of KenolKobil shares based on the takeover information that was not yet in the public domain.
He was alleged to have further demanded they split the profit gains estimated at Ksh.500 million — into half once they sell the acquired shares to French firm Rubis Energy, which announced on October 23 that it was taking over KenolKobil.