The three week delayed announcement of LION was followed by another disclosure delay by two and half months of the original transaction, done under Carson’s Ceylon Investment PLC (CINV).
In a filling to the stock exchange yesterday, LION disclosed that under its Directors, Hari Selvanathan (Deputy Chairman) , Suresh K. Shah (Chief Executive Officer, D.C.R.Gunawardena and K.Selvanathan,
Carson Cumberbatch PLC (CARS) had bought 3000 shares of LION at Rs.193.50, 200 shares at Rs.193.90, 100 shares at Rs.195.10, 96700 shares at Rs.200, and 200000 shares at Rs.202 per share.
Lion Brewery Ceylon (LION) is a 50.41% subsidiary of Ceylon Brewery PLC (BREW) which is a 74.93% subsidiary of Carson Cumberbatch Ceylon PLC (CARS) as at 31 December 2011.
LION said in its statement that the disclosure is in accordance with section 7.8 of Colombo Stock Exchange (CSE) rules. However, under section 200(2) of the Companies Act.No.07 of 2007, a disclosure is supposed to be done much earlier.
Sri Lanka’s capital market regulator Securities and Exchange Commission (SEC) had convinced the industry and investors several times that it was trying to position Colombo Stock Exchange as a disclosure-based trading market, making listed company transactions more transparent. However, most blue chip companies and a few high net worth individuals continue to disclose their major dealings to the CSE very much later.
According to the regulator, if a company or its directors disclose major dealings late to the CSE, it means that they have violated listing rules and normal sanctions will be applicable on such directors and entities.
source - www.dailymirror.lk