Peter Mwangi (NSE CEO),would like you to close your NSE account and open a unit trust fund or the equivalent or just go away. Having eating heartily from your participation in the NSE between 2003-6,he no longer needs your custom...

www.mjengakenya.blogspot.com

'NSE ACCOUNTS TOO MANY,SAYS BOURSE CHIEF'

Daily Nation 17 Sept 2009

Page 28

Behind the gardens...Behind the wall...Under the tree (Including: Red...Dark Blue...Yellow)

This was taken out of context by a tweet journo - not surprised though,given that the chengad media bill. I was at the function and what he was opining on was perhaps retail investors are best served by unit trusts than pure exposure to shares as a way of tapping into the expertise of the fund manager and only those who are very brave or have the inside lane should have pure exposure. This is the practice in the advanced market,retail investors typically buy unit trusts and rarely do they get pure exposure unless those sophisticated enough.

He gave the example of SA which only has 500k cds accounts never mind being a much bigger market by far than NSE. He also gave the example of france (i think) which is even larger than SA and only has slightly above 800k cds accounts yet we have 1.4m accounts for such a small market and lots of retailers crying and in all sorts of trouble with rogue brokers...he may have a point considering if you look at brokers tumbling you are unlikely to see a fund manager complaining or exposed. And also lets face it even in SK here,none of us can beat the best two fund manager returns in town over a 3 year period for obvious reasons

@ecstacy
read Kausha's take on the speech by the NSE boss

Could it be that many of the CDS accounts were the results of multiple applications by individuals during the Kengen and Safcom IPO's?

A number of people registered using ID's for all their rela's and domestic staff and cashed in on the first few days of trading!

The Registrar of Companies was also inundated with new registration applications for companies just prior to these IPO's. Could there have been a link?

If Mwangi digs deeper he may find that many CDS accounts were 'emptied' in the early days or weeks after the IPO's were listed for trading and have been dormant ever since!

This is not peculiar to this market or any other.....