Speaking on condition of anonymity, a highly placed SEC source who quoted from a confidential document told Daily Mirror the investigations were based on market manipulation, insider trading to front running of shares.
The SEC source said corporate establishments which were being investigated include Environment Resources Investments, Mirmar Beach Hotel PLC, National Lanka Finance Corporation, Huejay International, MTD Walkers PLC, Confifi Hotel Holdings, SMB Leasing, DPC Blue Twod & GREG, Hotel Reef Comber, Sommerville Stockbrokers, (PVT.) Ltd, Watapota Investments, Colombo Land and Development Company, Alutab Ltd, Pan Asian Power Ltd, Nation Lanka Finance, Deepes Merchant Ltd., Swarnamahal Financial Services, East West Properties Traders, Taprobane Securities (PVT) Ltd., Nawaloka Hospitals PLC, Union Bank PLC and Blue Diamond Jewellery Worldwide.
Inquiries by the SEC Surveillance Division on Mahaweli Reach Hotels, Ascot Holdings, Singer Finance, Radiant Gems, On’ally Holdings, Asian Finance, Asia Assets Finance and Acme Printing and Packaging Ltd., are pending
“The SEC has issued warnings to some establishments and imposed fines on several others following the findings of its Surveillance Division,” the source added.
For instance a payment of Rs.3.3 million has been imposed on the MTD Walkers PLC investment advisor following charges of market manipulation of share prices.
The SEC has issued notice on all the corporate establishments under scrutiny of the Surveillance Division and issued warning letters.
Two directors of Environment Resources Investments have been issued warning letters and a payment of Rs.3.3 million collected. (Sandun A.Jayasekera)