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(From The Nation (Kenya) - AAGM)
Byline: Washington Akumu
The market regulator is investigating the lead shareholder at A. Baumann - one of the basement firms at the Nairobi Stock Exchange - over allegations that he breached rules in the process of shedding off his shares.
The Capital Markets Authority's (CMA) probe is expected to zoom in on the activities of a certain Mr Horst Krumeich, named as the main shareholder at the company. Due to its low capitalisation, A. Baumann is listed on the Alternative Investment Market Segment. Last week, the NSE, in an unprecedented move, put out a notice asking brokers to be wary of any dealings with Mr Krumeich.
"He (Mr Krumeich) has been breaching NSE trading rules. Please be advised that the matter is now under investigation by the CMA and you are therefore requested to exercise caution and ensure no breach of the rules when dealing with this shareholder," said the bourse's Chief Executive, Mr Chris Mwebesa, in a letter obtained by Smart Company.
The specific rules that Mr Krumeich is accused of …