Dear Kagai, Thank you for your response. The section on financial reporting is aimed to curb those use the information that is not readly available to the general public for financial gain. Take for example the off loading of Uchumi shares by someone who had knowledge that was not in public domain. Obviously that amounts to insider trading. There is a difference between financial research and journalism. In research you are trying to predict certain events using publicly available knowledge. In journalism one may be privy (either by interviewing a CEO or information is brought to you to publish but you delay it while buying or dumping sshares) to the fact that Company X is to offer a dividend and split it shares. If you use the information to profiteer before the public is aware of it, then you are in breach of the law. This is how it is done with the Securities and Exchange Commission in the USA. I do not know which category you belong but there is room to propose how you see the way forward. Regards Ndemo.
Bwana PS,
Taking que from your latest post, allow me to express myself in 4 quick/short bullets regarding my personal concern on Media Regulation.
1. I run a company <www.mediacorp.co.ke> whose business is modelled in doing research on capital markets including the NSE and selling our findings to subscribed clients. The proposed regulation that researchers and analysts including their families not to trade in shares is of great concern.
2. Regulating local companies will give international competition undue advantage. e.g. Will the same rule apply to researchers and analysts employed by Reuters, Bloomberg, CNBC who run similar services and are busy setting up shops in Kenya??
3. If our main mode of dispatch is via internet, will regulation still be enforced because our website is locally registered?? If we change to a <.com>, and register the company outside the country, will we enjoy immunity enjoyed by foreign competition??
4. Is media sent via internet also within the regulation ambit?? Will this apply only to <.co.ke> or will Kenyans prefer to use <.com> to 'avoid' regulation.
Sir, before the proposed regulation, our concern was getting accurate research to many Kenyans who have invested in stocks especially those in the diaspora who do not have access to newspapers and local news. Many were requesting more infomation on how the law protects their investments if say.. a brokerage closes down...but it seems our efforts will be nipped right in the bud by the proposed regulation.
Sir, Please guide me if my fears are unfounded...Source of my concern is from the story posted on Business Daily here <http://bdafrica.com/index.php?option=com_content&task=view&id=1070&Itemid=3880>
-- With Kind Regards, Bildad Kagai MD - MediaCorp Limited Suite B2, Tetu Apartments StateHouse Avenue P. O. Box 20311-00200 Tel. 254 20 272 8332 URL. www.mediacorp.co.ke --
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