Thanks Daktari. Am at ease now. Nevertheless, taking advantage of your proposed opportunity window on the way forward, there is need to streamline the bill with the CMA Act of 2000 touching on Financial Reporting. Below are the current provisions relating to Financial Journalism as contained in the current CMA Act. Now while the intention or spirit when these rules were made in 2000 was to ensure that there was no manipulation by a journalist for his own gain, the trend is bound to change with the proliferation of the internet when reporting on the market. A case example is the KQ issue in yesterday's leading daily where the writer predicted losses yet there has not been any official statement by KQ (that I know of, confirming the claims made). The line is pretty thin and thats why we felt the need to be careful when using internet/websites as our main form of disseminating information. As of now CMA is taking responses on proposed amendments to the Act and its regulations and I know some market players have raised yesterday's article as a point that needs to be addressed. The trend like in other markets where a player pays a journalist to twist an article to his advantage has been around but its going to increase and what shall result will be general regulations since Kenyan regulators are not known to use specifics. As for now, I feel OK, since my specialisation is in financial research as opposed to financial journalism. 32. (1) This section applies to - (a) any person who is licensed under this Act; and (b) a financial journalist. (2) For the purposes of this section, "financial journalist" means a person who contributes advice concerning securities or prepares analyses or reports concerning securities for publication in a newspaper or periodical. (3) For the purposes of this section, a reference to securities is a reference to securities which are quoted on a securities exchange. (4) A person to whom section (1) applies shall maintain a register of the securities in which he has an interest and such interest or any changes in such interest shall be entered in the register within seven days of the acquisition or change in the interest. (5) The Authority or any person authorized by it in that behalf may require any person to whom section (1) applies to produce for inspection the register required under subsection (4) and the Authority or any person so authorized may make extracts from the register. Bill Kagai On 5/22/07, [email protected] <[email protected]> wrote:
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 --
_______________________________________________ kictanet mailing list [email protected] http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/bitange%40jambo.co.ke
---------------------------------------------- This message has been scanned for viruses and dangerous content by Jambo MailScanner, and is believed to be clean. --------------------------------------------- "easy access to the world"
---------------------------------------------- This message has been scanned for viruses and dangerous content by Jambo MailScanner, and is believed to be clean. --------------------------------------------- "easy access to the world"
_______________________________________________ kictanet mailing list [email protected] http://kictanet.or.ke/mailman/listinfo/kictanet
Please unsubscribe or change your options at http://kictanet.or.ke/mailman/options/kictanet/mediacorp.research%40mediacor...
-- -- 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 --