Dear Mr. Cheserem,
First, I would like to congratulate you on being appointed to the Chair of the Capital Market Authority (CMA) of Kenya. Despite others approval, I personally I find it disturbing for a man of your caliber to head an institution that has been rendered powerless by cartels of market insiders. You have done ‘great’ thing before, but I’m afraid this is not the time or place to repeat history.
I have decided to detail in this open letter my uttermost disgust and fear of what our Nairobi Stocks Exchange (NSE) has become. I believe by doing this I address the concern of many NSE investors like me and touch on the principal causes of concern of each one of us.
Following the unfortunate turn of events at the stock market, two stockbrokerage firms have collapsed, one placed under statutory management and others left with questionable characters. In all this we investors have bared the brunt. And all we have received from the people we entrusted our hard earned money to is excuses, from the mundane ones like computer errors on the CDS statement to the Global financial crisis.
Is this thing we call NSE just another legal pyramid scheme where investors can loose their investments and no one is prosecuted? All we get is press statements from the concerned authorities (CMA & NSE) and promises of instituting tough regulations, while the perpetrators of the ‘crimes-against-investors’ go scot-free.
I would want to believe that you are more knowledgeable of the above details and much more that’s contained in the Nyaga-PWC audit that has been kept secret from us. Nevertheless, I would like you to do some drastic changes lest the NSE collapse before the end of this global financial crisis. Starting with demutualization of the NSE, reduction in family ownership in brokerage firms or just constitution of a parallel/new securities market.
If none of this can be done, then simply close down CDSC, outlaw all (remaining) brokers and revert to share certificate and open-out-cry method of trading. At least then I will trust that my shares are safe under my mattress.
I wish you well in your work to clean up this mess called the NSE.
Yours truly,
Kainvestor.
First, I would like to congratulate you on being appointed to the Chair of the Capital Market Authority (CMA) of Kenya. Despite others approval, I personally I find it disturbing for a man of your caliber to head an institution that has been rendered powerless by cartels of market insiders. You have done ‘great’ thing before, but I’m afraid this is not the time or place to repeat history.
I have decided to detail in this open letter my uttermost disgust and fear of what our Nairobi Stocks Exchange (NSE) has become. I believe by doing this I address the concern of many NSE investors like me and touch on the principal causes of concern of each one of us.
Following the unfortunate turn of events at the stock market, two stockbrokerage firms have collapsed, one placed under statutory management and others left with questionable characters. In all this we investors have bared the brunt. And all we have received from the people we entrusted our hard earned money to is excuses, from the mundane ones like computer errors on the CDS statement to the Global financial crisis.
Is this thing we call NSE just another legal pyramid scheme where investors can loose their investments and no one is prosecuted? All we get is press statements from the concerned authorities (CMA & NSE) and promises of instituting tough regulations, while the perpetrators of the ‘crimes-against-investors’ go scot-free.
I would want to believe that you are more knowledgeable of the above details and much more that’s contained in the Nyaga-PWC audit that has been kept secret from us. Nevertheless, I would like you to do some drastic changes lest the NSE collapse before the end of this global financial crisis. Starting with demutualization of the NSE, reduction in family ownership in brokerage firms or just constitution of a parallel/new securities market.
If none of this can be done, then simply close down CDSC, outlaw all (remaining) brokers and revert to share certificate and open-out-cry method of trading. At least then I will trust that my shares are safe under my mattress.
I wish you well in your work to clean up this mess called the NSE.
Yours truly,
Kainvestor.
5 comments
I was very pleased when CDSC or some registrar somewhere rejected my very old NBK and KQ share certificates because of the difference between current signature and when the stocks IPO'd.
Mon Feb 23, 08:23:00 PM EATI feel my shares are safer with my certificates stored in my safe. Unfortunately, my KCB share certificates were accepted, which means they are available for rogue trading.
Back in the '90s when the marvel of online trading was gaining ground world-over, I spoke to a few guys at the NSE. "We'll never go that way because the system will be too transparent" they said.
Mon Feb 23, 09:45:00 PM EATIn retrospect, I'm afraid they might have been onto something BIG!
No wonder it took forever for the CDSC thing to work!
@Ssem: They always reject immobilizing share certificates on grounds of signature differences. I think they don't even look at them. as for your KCB shares you can follow concept's advice on safe guarding your investment at the NSE. Great tips
Tue Feb 24, 09:59:00 AM EAThttp://conceptadvisoryservices.co.ke/wordpress/
@V.A: The CDSC thing is what has facilitated all this mess. Giving investors an illusion of safety but only making it easier for brokers to play around with clients life savings. I don't thing it works and they are not independent - majority owned by the brokers.
Am i the only one who thinks Mwangi (NSE CEO) is sleeping on the Job? No wond yet on the safety of investors fund and shares with the brokers despite what we are reading in the papers. NSE needs to be more proactive..
Tue Feb 24, 12:31:00 PM EATMwangi did not know what he was getting himself into. Mwebesa was wise to exit when he did.
Thu Feb 26, 11:02:00 PM EATInvestor confidence continue to erode and only few brave and maybe well endowed investors continue to buy.
What ideas do you guyz have to get the market back on track?
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