Monday, June 23, 2008

Stockmarket Governance

Although CMA is nominally in charge of the stock market, we must admit that they way it currently operates is almost certain to continue causing us problems as investors at the NSE. Right now we have three issues that I am trying to figure out. One is the issue of refunds which has been a pain since KenGen IPO. One can understand that CBK wants to start doing its job of inflation-control and can't do so until it has a realistic picture of the money supply issue.

But changing the rules of the game on the 80th minutes is a no-no on a football pitch as it should be on the stockmarket. We now have a backlog of cheques and refund issues that will probably take KenGen-type of periods to resolve. 2ndly, you can't have a situation where the institution whose importance to the stockmarket is almost on par with the CBK in its area operating in complete darkness. Why pray doesn't CDSC have internet or email contacts?

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