Investors at collapsed Discount Securities Ltd have six more months starting November 1 to file compensation claims after the High Court extended the statutory management period.
The Capital Markets Authority, (CMA) had sought more time to allow the investors to also transfer their investment accounts to other market intermediaries.
“It is hereby ordered that the term of the statutory manager of Discount Securities Ltd is hereby extended for a further term of six months from November 1, 2015,” said the High Court in a notice published on Saturday.
The markets regulator has in the past received such six-month extensions of the statutory period for DSL since 2009.
In seeking the extensions, the CMA has been noting that more time is required to allow the statutory manager to complete the compensation for the DSL investors.
CMA started the second and final round of compensation for DSL investors in October 2012 and sought the extended period to complete the payouts.
The compensation, according to the market regulator, has been slowed by investors failing to file their claims on time.
The first phase of compensation has been completed, having started in February 2012, when individual investors were paid up to a maximum of Sh10,000.
The second phase involves payment to investors who lost up to Sh50,000.
DSL went under in 2009 due to fraudulent transactions by the firm’s employees.
The compensation is being done through the Investor Compensation Fund, which gets revenues from fees charged on new listings and a share of 0.01 per cent commission for every deal executed at the Nairobi Securities Exchange.
Other stockbrokers that have been placed under statutory management in the recent past are Nyaga Stockbrokers, Francis Thuo and partners and Ngenye Kariuki and Company.