According to sources close to the capital market regulator, the Securities and Exchange Commission (SEC) has taken action against major market offenders in the past month for offences that were committed more than ten years ago, and additional charges are imminent.
Nimal Perera, who worked for the Vallibel Group of firms in the past and is currently an independent investor, is the most notable of these individuals. He has been found guilty on two separate instances of market and price manipulation.
On September 2, 2011, the SEC filed an action against Mr. Perera for creating a false market or giving the misleading appearance of active trading in the shares of Regnis Lanka PLC during the period of September to October 13, 2011 (which was 11 years ago), and in the shares of ASCOT Holdings PLC during the period of September 5 to September 12, 2011 (which was also in 2011), respectively. After receiving a request to compound from Mr. Perera, the Commission made the decision to compound this offence after the parties paid a penalty of 3.3 million rupees each, for a total of 6.6 million rupees, to the compensation fund of the SEC. These payments were made without an admission of liability. The violation can be found in Section 51 A of the SEC Rules and falls under Rule 12 of those rules.
On August 17, a warning was given to Buddhika Payou regarding the manipulation of the market and the prices of goods.
A. S. Hendavitharana, Dr. N. A. Senadeera, P.H.K. Boteju, I. P. A. Piyatissa, W. M. N. P. Rathnayaka, K.A.D.A. Meththasena, H.J.M.D.N. Bandara, and W.R. Dharmasena were all issued letters of warning by the SEC on January
The governing body has also held three people accountable, namely K. Boralessa, A. Medonza, and J. M. Alles, for failing to make immediate disclosure of crucial information in connection with the financial crisis that Magpek Exports Ltd. is currently experiencing.
K. Keithiswaran was found guilty of submitting audited financial accounts in the Annual Reports of Singalanka Standard Chemicals PLC under forged signatures, and the offence was compounded upon him confessing that he was responsible for the crime.
According to what was said on the website of the Securities and Exchange Commission (SEC), the names of specific people for whom enforcement action had been taken in the past on certain offences were removed in accordance with the retention policy for publications.
Within the previous 15 years, this action taken by the regulator of the capital market has been one of the most successful in terms of bringing those responsible to justice. The Securities and Exchange Commission (SEC) has been moving slowly in its investigations of stock market manipulators who were monopolising the market during the time of Mahinda Rajapaksa.
