FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka


Submit PostSubmit Post
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post



Latest topics

» UNHCR එකේ ලොකූ ටෝක දැම්මට සමහර ඔස්තාර් ලා කියන ආර්තික සම්භාදක අරවා මේවා මුකුත් එන්නේ නැ
by judecroos Today at 7:42 am

» Leading brokers causing market downturn
by Mithooshan Today at 7:40 am

» is it a good time to sell expo shares
by Kipling Today at 7:23 am

» GLAS will be winner with Super Gain.
by Eranga87 Today at 2:56 am

» Must watch this video - unnecessary panic
by Jana Today at 1:03 am

» LOLC HOLDINGS PLC (LOLC.N0000)
by learningthemarket Today at 12:03 am

» Daily Foreign Transactions
by Mr. X Yesterday at 11:28 pm

» DIPD/HAYC/HAYL
by Sihas005 Yesterday at 11:21 pm

» Fall seven times, stand up eight.What happened, has happened. Free your mind from it. Stock market for beginners
by Asoka Samarakone Yesterday at 9:21 pm

» RICHARD PIERIS EXPORTS PLC (REXP.N0000)
by කොටස් වෙළඳපොළ2020 Yesterday at 9:06 pm

» Unscripted daily drama.Traders are uncertain whether to buy or sell. Stock market for beginners
by Jayashantha Yesterday at 8:40 pm

» SRI LANKA TELECOM PLC (SLTL.N0000)
by KingKong Yesterday at 7:35 pm

» ACCESS ENGINEERING ( AEL.N )
by subash81 Yesterday at 7:01 pm

» OVERSEAS REALTY (CEYLON) PLC (OSEA.N000)
by Captain Yesterday at 5:49 pm

» EXPOLANKA HOLDINGS PLC (EXPO.N0000)
by judecroos Yesterday at 2:40 pm

» LITE.R - STOP THE MADNESS
by Big Bull Yesterday at 12:59 pm

» RHL - CSE's most undervalued stock?
by Promoney Yesterday at 12:09 pm

» Sunshine holding future potential
by keen Yesterday at 10:37 am

» February the month of purification for the Colombo Stock Market
by samaritan Yesterday at 9:47 am

» 5% down...
by Jana Yesterday at 1:52 am

EXPERT CHRONICLE™

ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

CHRONICLE™ NEWS PRODUCTS

FINANCIAL CHRONICLE™

Views & Reviews, Analysis, Evaluations, Discussions, Gossip and Hot Tips relating to Sri Lankan companies listed on the Colombo Stock Exchange (CSE)
Contribute




DAILY CHRONICLE™

Latest news and articles published in Newspapers, Websites, Blogs and other online news sites relating to business and investments in Sri Lanka
Contribute



ECONOMIC CHRONICLE™

This is a section that provide news, views, analysis, predications relating to Political and Socio-Economic factors and how such activities affect the Stock Market and other economic activity of the Country.

Contribute




EXPERT CHRONICLE™

This is an exclusive section for Expert Articles which will help member to share knowledge through comments and responses of the members. All members are allowed to reply and make comments to these articles.

Contribute


Submit Post


CHRONICLE™ YouTube

Youtube Videos and other visual presentations relating Stock market and other investment advise submitted by members or other contributors.

Contribute


Submit Post


කොළඔ කොටස් වෙළඳපොළේ වංශකථාව
කොළඔ කොටස් වෙළඳපොළේ ලැයිස්තුගත සමාගම් කොටස් ගැන තොරතුරු¸විශ්ලේෂණ¸සාකච්ඡා¸ කටකතා¸රසකතා යන සියල්ල අපේම සිංහලෙන් කතා කළ හැකි ‘කතා මණ්ඩපය’

Contribute

Twitter Feeds
POPULAR COMPANIES
A

ABANS ELECTRICALS PLC

ACCESS ENGINEERING PLC Hot

ACL CABLES PLC

ACL PLASTICS PLC

ACME PRINTING & PACKAGING PLC

AGSTAR PLC

AITKEN SPENCE HOTEL HOLDINGS PLC

AITKEN SPENCE PLC

ANILANA HOTELS AND PROPERTIES PLC

ARPICO INSURANCE PLC

ASIA ASSET FINANCE PLC

ASIA CAPITAL PLC

B

BAIRAHA FARMS PLC

BALANGODA PLANTATIONS PLC

BIMPUTH FINANCE PLC

BLUE DIAMONDS JEWELLERY WORLDWIDE PLC

B P P L HOLDINGS PLC

BROWNS BEACH HOTELS PLC

BROWNS INVESTMENTS PLC

C

CARGO BOAT DEVELOPMENT COMPANY PLC

CENTRAL INDUSTRIES PLC

CEYLON COLD STORES PLC

CEYLON GRAIN ELEVATORS PLC Hot

CEYLON TEA BROKERS PLC

CEYLON TOBACCO COMPANY PLC

CHEVRON LUBRICANTS LANKA PLC

COLOMBO FORT LAND & BUILDING PLC

COMMERCIAL BANK OF CEYLON PLC

CITRUS LEISURE PLC Hot

COMMERCIAL CREDIT AND FINANCE PLC

D

DANKOTUWA PORCELAIN PLC

DFCC BANK PLC

DIALOG AXIATA PLC

DIALOG FINANCE PLC

DIPPED PRODUCTS PLC

DISTILLERIES COMPANY OF SRI LANKA PLC

DUNAMIS CAPITAL PLC

E

EAST WEST PROPERTIES PLC Hot

EASTERN MERCHANTS PLC

EXPOLANKA HOLDINGS PLC

E-CHANNELLING PLC

F

FIRST CAPITAL HOLDINGS PLC

G

GALADARI HOTELS (LANKA) PLC

GUARDIAN CAPITAL PARTNERS PLC

H

HATTON NATIONAL BANK PLC

HAYLEYS PLC

HAYLEYS FABRIC PLC

HAYLEYS FIBRE PLC Hot

HEMAS HOLDINGS PLC

HIKKADUWA BEACH RESORT PLC

HNB ASSURANCE PLC

HVA FOODS PLC

J

JANASHAKTHI INSURANCE COMPANY PLC

JOHN KEELLS HOLDINGS PLC Hot

JOHN KEELLS HOTELS PLC

L

LANKA ASHOK LEYLAND PLC

LANKA IOC PLC

LANKEM CEYLON PLC

LANKEM DEVELOPMENTS PLC

LAUGFS GAS PLC

LAUGFS POWER LIMITED

LOLC FINANCE PLC

LOLC HOLDINGS PLC

LUCKY LANKA MILK PROCESSING COMPANY PLC

M

MELSTACORP PLC

N

NATIONAL DEVELOPMENT BANK PLC

NATION LANKA FINANCE PLC

NESTLE LANKA PLC

O

ORIENT FINANCE PLC

OVERSEAS REALTY (CEYLON) PLC

P

PANASIAN POWER PLC

PEOPLE'S LEASING & FINANCE PLC

PIRAMAL GLASS CEYLON PLC

PRIME FINANCE PLC

R

RAIGAM WAYAMBA SALTERNS PLC

RENUKA AGRI FOODS PLC

RENUKA CAPITAL PLC

RENUKA HOLDINGS PLC

RICHARD PIERIS AND COMPANY PLC

RICHARD PIERIS EXPORTS PLC Hot

ROYAL CERAMICS PLC

S

SAMPATH BANK PLC

SEYLAN BANK PLC

SIERRA CABLES PLC

SINGHE HOSPITALS PLC Hot

SMB LEASING PLC

SOFTLOGIC HOLDINGS PLC

SOFTLOGIC LIFE INSURANCE PLC

SRI LANKA TELECOM PLC

SWISSTEK (CEYLON) PLC Hot

T

TEEJAY LANKA PLC

TESS AGRO PLC

THREE ACRE FARMS PLC

TOKYO CEMENT COMPANY (LANKA) PLC Hot

U

UNION BANK OF COLOMBO PLC

V

VALLIBEL FINANCE PLC

VALLIBEL ONE PLC Hot

VALLIBEL POWER ERATHNA PLC

W

WASKADUWA BEACH RESORT PLC


You are not connected. Please login or register

FINANCIAL CHRONICLE™ » FINANCIAL CHRONICLE™ » ERI to wait another week to settle its 10 million rupee compound case with SEC.

ERI to wait another week to settle its 10 million rupee compound case with SEC.

Go down  Message [Page 1 of 1]

LBT

LBT
Stock Trader
Environmental Pollution

http://lankabusinesstoday.com/index.php?option=com_content&view=article&id=286:environmental-pollution&catid=53:market&Itemid=77

ERI to wait another week to settle its 10 million rupee compound case with SEC.

Sep 03, 2011 (LBT) - The final announcement of the compound case against the Sri Lanka’s Environmental Resources Plc (ERI) will be made after the next regulator’s meeting, market sources said.

“"We are currently aware that there are few more things to settle with the regulator. So, they (Regulator) will make a final announcement, probably after the next week Commission’s meeting.” the sources close to ERI raveled to our web site.


So, they (Regulator) will make a final announcement, probably after the next week Commission’s meeting.” the sources close to ERI raveled to our web site.

Market sources last week said the company and three directors namely Chairman Lalith Heengama, his son and the director Dr. Kosala Heengama and US born G. S. Newsome had been fined close to 10 million rupees by the Sri Lanka Securities and exchange commission .

A company official confirmed that it had settled with the SEC last week, but SEC yet to clarify its position.

Environmental Resources Investment PLC formerly known as Walker & Greig Limited was incorporated in Sri Lanka almost a century ago in the year 1910. It was listed in the Colombo Stock Exchange (CSE) in 1970.

ERI's core business is that of an 'Investment Holding".

ERI became a top ten capitalized company and later bought some troubled firms.

Opposition lawmaker, Harsha De Silva about ERI

Meanwhile Opposition lawmaker, Harsha De Silva, issuing a statement urging the Securities and Exchange Commission to commence legal action against Environment Resources Investment PLC, saying compounding offences only compounded the problem.

"We understand that the Securities and Exchange Commission (SEC) is planning to compound offences of securities fraud by some alleged white-collar criminals who have taken a large number of innocent investors as well as the credibility of the market for a good ride while becoming billionaires themselves. Media reports have begun to circulate that Environmental Resources Investments (ERI) and its Directors have agreed with the SEC to pay an insignificant fine of Rs 10 million and compound a offence related to securities fraud. While the nature of the securities fraud has not been made public it was well known that the SEC was investigating ERI for trading and disclosure related matters.

"While the SEC is yet to make a statement on this matter and acknowledging that this statement is based on media reports we nevertheless believe it is SEC’s duty, as the regulator, to take swift action under the SEC Act to proceed to trial. If ERI has not committed any crime they will be found not guilty but if convicted the perpetrators shall be imprisoned up to five years in addition to relevant fines. It is this lack of tough action by the SEC that is encouraging increased white-collar crime at the Colombo Stock Exchange (CSE) making a mockery of fair-trading by bona fide investors. The status quo does not augur well for the CSE or the economy in the long run. This is particularly so when Sri Lanka is looking for large scale private investments to sustain the post-war development effort.

"In fact, ERI has been under the watch of the investing public and analysts for quite some time for its transactions with hardly any solid information to substantiate its various claims. The unprecedented and sudden rise of its share price from Rs 28 to Rs 275 based inter alia on news of purchasing a company purportedly with access to platinum assets and the subsequent outflow of some USD 18 million to the British Virgin Islands as part payment had been under constant query by market watchers. It has now been revealed that the shares of the said company; Environment Resources Limited (ERL), ironically sounding almost similar to ERI, has been sold to a company who’s ultimate owner is the same entity that ERI originally purchased the shares from. In this background allegations of money laundering and market manipulation continue to be rife. Paradoxically, ERI, boasting of mega profits from global and local investments have just filed a consolidated loss of Rs 23 million for the quarter ending 30 June 2011 as opposed to a Rs 418 million profit for the year ending 31 March 2011.

"Market watchers have also levelled allegations of overseas criminal convictions on at least one of the Directors of ERI bringing in to question the record of the so-called whiz kids behind this company. Allegations of non-disclosure of related party transactions have been made on at least two Directors with regard to a company by the name of Knight Trade that happens to be the second largest shareholder of ERI which is owned by a company named Yenom which coincidentally is owned by the said two Directors of ERI. Questions have been raised if this company, Knight Trade, has the authority to use the official ‘Lion logo’ of Sri Lanka. It is further alleged that ERI uses the identical logo for a stock broking company in Sri Lanka named ‘DNH Financial (Pvt) Ltd’ and for a company named ‘DNQ Financial Private Limited’ based in Dubai to confuse investors and undertake deceptive transactions.

"In an almost unbelievable development, as per the bid book, ERI had agreed to build the 2018 Hambantota Commonwealth Games Village along with Sri Lanka Insurance Corporation and become the largest private sector investor up to date while the SEC was investigating the company for alleged securities fraud and or disclosure offence.

"It seems every time connected persons get caught for fraudulent activity the SEC seem to cut deals with them to leave them out of jail in return for insignificant fines by compounding their cases. The last publicized case of compounding was that of two Directors of Nawaloka Group who paid petty fines of Rs 3.3 million each for conspiring to manipulate the share price of Nawaloka Hospitals.

"Given the widespread allegations of insider dealing and market manipulation at the CSE the SEC must act swiftly and with the full force of the SEC Act to punish these fraudsters to make the CSE a place for bona fide investors; both local and foreign. The fact that the All Share Price Index (ASPI) is up only by a marginal 3.6 percent for the entire year is sufficient proof to show that the CSE is not performing at the level it was expected to, and more need to be done to build investor confidence.

"It is noteworthy to point out that in 2005 ADB wrote in its Sri Lanka: Financial Sector Assessment Report that "compounding of charges is only compounding the problem of insider dealing. The SEC should cease the practice of compounding charges." It is high time the powerful Board of the SEC heeded this advice before the CSE loses its already shaky credibility as a place that honest people can participate in."


Related Link:

http://www.erlanka.com/index.php

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum