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Courtesy - Sunday Leader
Wednesday was a black day for the Colombo stock market with the removal of the market regulator for allegedly investigating certain high networth individuals for stock price manipulation and insider trading.
Securities and Exchange Commission (SEC) Director General Malik Cader who was allegedly conducting such investigations was removed from his post and transferred to the Finance Ministry on that day.
SEC functions under the Finance Ministry of which the minister is President Mahinda Rajapaksa. No successor to him has been appointed thus far, which appointment lies in the hand of the Finance Ministry.
“The bourse has lost its credibility,” a market source commenting on Cader’s removal told this reporter. It’s akin to a hypothetical situation say that you as a journalist is found to take money to write your stories, and the editor finds out this fraud, the source drawing an analogy said. But instead of penalizing you, the editor who discovered your malfeasance is sent home, the source said.
Under those circumstances foreigners will not touch the market with a barge pole, he added. “We may well find an exodus of foreign investors from the bourse,” the source further said.
Most foreign investments made in the market are by investors from the West to whom the “rule of law” in running a stock market is sacrosanct.
Those manipulators had allegedly told a powerful VVIP that if Cader is removed they would take the stock market up, which they did, on Wednesday, albeit on a low turnover and aided and abetted by those stocks which are the playing field of those crooks, the source said.
Turnover on Wednesday was Rs. 1.5 billion, while the indices went up by 170.43 points and 139.40 points respectively over that of Tuesday’s close. However the indices the following day Thursday fell by 54.84 and 34.41 points respectively on a low Rs. 875.5million turnover.
The source said that hereafter investors should be cautious in throwing their money on those stocks which are in the game plan of those manipulators if they don’t want to get their fingers burnt. That way they may avoid losing their moneys when investing in the bourse, he said (See also the lead story in the Economy pages of this publication in its issue of 23.10.2011.).
Sacked For Doing Job
A source close to the former Securities and Exchange Commission (SEC) Director General Malik Cader who was unceremoniously removed from his chair on Wednesday for conducting investigations into insider trading and stock price manipulation by certain powerful personalities said that he was sacked for doing his job of work.
He said that the launch of such investigations into breaking SEC rules was not done at the sole discretion of Cader, but was on a joint decision by the SEC, its commissioners and the Surveillance Department of the Colombo Stock Exchange (CSE) on the basis of set criteria that warranted for such investigations to take place.
The source said that the SEC chairman Mrs. Indrani deleted according to reports had said that those investigations will continue
On the question that Cader was once the blue-eyed boy of the administration and why is it that the tables were now turned against him? He replied and said that Cader was not the blue eyed boy of anyone and that his appointment was on merit.
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Courtesy- Sunday Leader
Short URL: http://www.thesundayleader.lk/?p=50219
Wednesday was a black day for the Colombo stock market with the removal of the market regulator for allegedly investigating certain high networth individuals for stock price manipulation and insider trading.
Securities and Exchange Commission (SEC) Director General Malik Cader who was allegedly conducting such investigations was removed from his post and transferred to the Finance Ministry on that day.
SEC functions under the Finance Ministry of which the minister is President Mahinda Rajapaksa. No successor to him has been appointed thus far, which appointment lies in the hand of the Finance Ministry.
“The bourse has lost its credibility,” a market source commenting on Cader’s removal told this reporter. It’s akin to a hypothetical situation say that you as a journalist is found to take money to write your stories, and the editor finds out this fraud, the source drawing an analogy said. But instead of penalizing you, the editor who discovered your malfeasance is sent home, the source said.
Under those circumstances foreigners will not touch the market with a barge pole, he added. “We may well find an exodus of foreign investors from the bourse,” the source further said.
Most foreign investments made in the market are by investors from the West to whom the “rule of law” in running a stock market is sacrosanct.
Those manipulators had allegedly told a powerful VVIP that if Cader is removed they would take the stock market up, which they did, on Wednesday, albeit on a low turnover and aided and abetted by those stocks which are the playing field of those crooks, the source said.
Turnover on Wednesday was Rs. 1.5 billion, while the indices went up by 170.43 points and 139.40 points respectively over that of Tuesday’s close. However the indices the following day Thursday fell by 54.84 and 34.41 points respectively on a low Rs. 875.5million turnover.
The source said that hereafter investors should be cautious in throwing their money on those stocks which are in the game plan of those manipulators if they don’t want to get their fingers burnt. That way they may avoid losing their moneys when investing in the bourse, he said (See also the lead story in the Economy pages of this publication in its issue of 23.10.2011.).
Sacked For Doing Job
A source close to the former Securities and Exchange Commission (SEC) Director General Malik Cader who was unceremoniously removed from his chair on Wednesday for conducting investigations into insider trading and stock price manipulation by certain powerful personalities said that he was sacked for doing his job of work.
He said that the launch of such investigations into breaking SEC rules was not done at the sole discretion of Cader, but was on a joint decision by the SEC, its commissioners and the Surveillance Department of the Colombo Stock Exchange (CSE) on the basis of set criteria that warranted for such investigations to take place.
The source said that the SEC chairman Mrs. Indrani deleted according to reports had said that those investigations will continue
On the question that Cader was once the blue-eyed boy of the administration and why is it that the tables were now turned against him? He replied and said that Cader was not the blue eyed boy of anyone and that his appointment was on merit.
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Courtesy- Sunday Leader
Short URL: http://www.thesundayleader.lk/?p=50219
regulations imposed should also be ammended
