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| Sunday, 21 August 2005 |
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SEC compounds market manipulation offence The Securities and Exchange Commission (SEC) in a media release said that it has compounded the market/price manipulation offence by Dinesh J. Ambani and Metropolitan Office (Pvt) Ltd. The following is the statement issued by SEC Director General Channa de Silva. The Securities and Exchange Commission (SEC) by virtue of the powers vested in it under the provisions of the Securities and Exchange Commission of Sri Lanka Act No. 36 of 1987 (as amended) conducted an investigation into certain trades in the shares of Metropolitan Resource Holdings Ltd. executed by Dinesh J. Ambani of 30/4, Ward Place, Colombo 7 and M/s. Metropolitan Office (Pvt) Ltd. of 85, Braybrooke Place, Colombo 2 in order to ascertain whether the said trades amounted to market/price manipulation in terms of Rule 12 in Gazette bearing No. 1215/2 and dated 18th December 2001, which Rule was formulated by the SEC under Section 53 of the aforesaid Act. Since the evidence elicited during the course of the investigation suggested that through the execution of the trades, Dinesh J. Ambani and M/s. Metropolitan Office (Pvt) Ltd., had committed the offence of Market/Price Manipulation, Notice of Action was issued to them on February 10, 2005. Consequent to the Notice of Action being issued to Dinesh J. Ambani and M/s. Metropolitan Office (Pvt) Ltd., and action being filed against the said parties on the charge of Market/Price Manipulation, the SEC received a written communication dated June 8, 2005 from the Attorney-at-Law acting for the parties concerned informing the SEC that the trades in question had been carried out by them without any intention whatsoever of manipulating the market/price with respect to any share, and requesting the SEC to compound the offence in terms of the provision in the SEC Act. The Commission at a meeting held on June 8, having considered the circumstances in which the offence is alleged to have been committed, decided to compound the said offence in terms of Section 51A of the SEC Act for three million three hundred thousand rupees being paid to the SEC by each of the said parties, Dinesh J. Ambani and M/s. Metropolitan Office (Pvt) Ltd. The aforesaid sums of three million three hundred thousand rupees were paid by Dinesh J. Ambani and M/s. Metropolitan Office (Pvt) Ltd. on August 5, 2005, and the offence compounded by the SEC. The aforesaid sums have since been credited to the Compensation Fund established under the SEC Act. It terms of the SEC Act compounding does not entail a finding of guilt. |
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