SEC files action against Wegapitiya & others for market manipulation in Laugfs Gas
Nov 05, 2019 (LBO) – Sri Lanka’s Securities & Exchange Commission (SEC) today filed an action in the Colombo Fort Magistrate Court against W.K.H. Wegapitiya, U.K. Thilak N. De Silva and Thakshila I. Hulangamuwa.
The action is related to the commission of the offence of market manipulation, conspiracy to commit market manipulation and for aiding & abetting to commit such offence with respect to the shares of Laugfs Gas, a company listed on the CSE.
SEC FILES ACTION FOR MARKET MANIPULATION IN LAUGFS GAS PLC SHARES
The Securities & Exchange Commission of Sri Lanka (SEC) filed action in the Colombo Fort Magistrate’s Court on 05″ November 2019 against Mr. W.K.H. Wegapitiya, Mr. U.K. Thilak N. De Silva and Mr. Thakshila I. Hulangamuwa for the commission of the offence of market manipulation, conspiracy to commit market manipulation and for aiding & abetting to commit such offence with respect to the shares of Laugfs Gas PLC (LGL), a company listed on the Colombo Stock Exchange.
If found guilty the defendants shall be liable to an imprisonment of either description for a period not exceeding five years or to a fine not less than fifty thousand rupees and not exceeding ten million rupees or to both such imprisonment and fine.
The aforesaid defendants respectively are the Chairman and the Managing Director of Laugfs Gas PLC and an investment advisor attached to a Stockbroker firm. Orders had been placed for trading in the shares of LGL on 07’h and 10″ October 2011 using the CDS accounts of certain clients of the Stockbroker firm of the aforesaid investment advisor by the use of several manipulative devices. Such share trading executed had created a false and misleading appearance of active trading, with respect to the market and the price of the LGL share, in contravention of Rule 12 of Securities and Exchange Commission of Sri Lanka Rules.
Charges against the defendants have been filed for the violation of Rule 12 of the SEC Rules which is an offence under section 51(1)(a) of the Securities & Exchange Commission of Sri Lanka Act No.36 of 1987 (as amended) and is punishable under section 51(2) of the said Act, read in conjunction with sections 102 and 113A of the Penal Code of Sri Lanka.
Hon. Ranga Dissanayake, the Learned Magistrate, having taken cognizance of the submissions of Mr. Sudarshana De Silva, Deputy Solicitor General of the Attorney General’s Department who appeared on behalf of the SEC, issued summons on the defendants to appear before the Magistrate on 13‘h December 2019.
SEC files action against powerful businessman Dr. Sena Yaddehige
April 7, 2019
Powerful businessman Dr. Sena Yaddehige has been charged with insider dealing by the Securities and Exchange Commission of Sri Lanka (SEC) in a case filed on March 7 before the Fort Magistrate’s Court.
The SEC said in a media statement on Sunday that the charge pertained to dealing in the shares of Kegalle Plantations PLC (KGAL) listed on the Colombo Stock Exchange, being the Chairman of the company, just before a Rs 45 dividend was declared by KGAL on July 10, 2015. This is in breach of Section 32 of the Securities and Exchange Commission of Sri Lanka Act No. 36 of 1987 (as amended).
The SEC also cited Subramanium Thinamany as a defendant in this case for aiding and abetting Dr. Yaddehige to commit the offence of insider dealing. Dr. Yaddehige is also chairman of Richard Peiris Group.
The SEC said the Magistrate having heard the submissions of Sudarshana De Silva, Deputy Solicitor General of the Attorney General’s Department who appeared for the SEC, issued summons on Dr. Yaddehige and Mr. Thinamany to appear before the Magistrate last Thursday (March 28). On that day Mr. Thinamany appeared before the Magistrate while the Attorney-at-Law who represented Dr. Yaddehige took notice of the next date Dr. Yaddehige was required to appear before the Magistrate.
Meanwhile, March 21, an order was sought from the Court of Appeal by Dr. Yaddehige in the writ application filed by him against the SEC, to stay the proceedings of the Magistrate’s Court. Ms. Shaheeda Barrie, Senior State Counsel of the Attorney General’s Department making submissions on behalf of the SEC objected to Dr. Yaddehige’s request. Upon hearing the submissions of both parties the Court of Appeal bench comprising Justice Kumudini Wickramasinghe and Justice Mahinda Samayawardane refused to grant the interim relief sought by Dr. Yaddehige.