Nairobi April 08, 2016…..The Capital Markets Authority (CMA) and Central Depository and Settlement Corporation Limited (CDSC) would like to provide the following clarifications with regard to Genghis Capital Limited (Genghis) a company closely related to Chase Bank Kenya Limited (in Receivership).
Genghis is licensed and regulated as an Investment Bank by the Capital Markets Authority (CMA). Investment banks serve as advisors on raising financial capital, underwriters, fund managers or as the client's agent in the issuance of securities. They also facilitate investors to buy and sell securities as well as trade on their own account.
Genghis is also a Central Depository Agent (CDA) duly registered by the CDSC to carry out services provided by the CDSC. The services include assisting customers with opening of Central Depository System accounts (CDS) in respect of shares and corporate bonds held by an investor.
CMA and CDSC would like to clarify that the securities held in the respective CDS accounts by any CDA including Genghis in respect of customers are in the custody of the Central Depository and Settlement Corporation (CDSC) and not the CDA itself. Investors are therefore assured that their securities are in safe custody.
We are engaging with the Board and Management of Genghis to assess the impact of the developments at Chase Bank (Kenya) Limited on the operations of Genghis in the interest of the investing public.