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SEC To Take Legal Action

Sep 27, 2011 10:31:43 AM - thesundayleader.lk

The Securities and Exchange Commission (SEC) says that legal action would be instituted against five investors who have allegedly been engaged in actions that falls under insider dealings provisions.

The SEC issuing a statement today said that the five investors for whom notices of action were issued are employees of SMB Leasing PLC.

An investigation conducted by the SEC has found that the aforesaid employees cum investors had allegedly purchased shares of SMB Leasing prior to information pertaining to rights issue of shares with attached warrants relating to SMB was disseminated to the Colombo Stock Exchange (CSE).

The SEC statements says, “The evidence elicited during the course of the above investigation suggested that the aforesaid investors, being employees of the SMB, had been privy to the unpublished price sensitive information pertaining to the Rights Issue of shares with attached warrants or at least regarding a new issue of shares relating to the SMB at the time purchases in the said shares had been executed in their respective securities accounts.”

The SEC further notes that a decision was reached that the purchase of the SMB shares by the aforesaid investors as referred to above, fall within the Insider Dealing provisions contained in Section 32 of the SEC Act as amended.