SEC goes to court against market manipulation

Colombo (News 1st): The Securities & Exchange Commission of Sri Lanka (SEC) has filed an action in the Colombo Fort Magistrate’s Court yesterday against Laugfs Gas PLC, a company listed on the Colombo Stock Exchange (CSE). The case has been filed against W.K.H. Wegapitiya, U.K. Thilak N. de Silva, and Thakshila I. Hulangamuwa over market manipulation, conspiring to commit market manipulation, as well as aiding and abetting to commit the offense with respect to shares. According to the SEC, if found guilty, the defendants would be liable to imprisonment of either description for a period not exceeding five years, or to a fine between Rs.50,000 and Rs.10 million. Through a press release, the SEC says, the defendants, respectively, are the Chairman and the Managing Director of Laugfs Gas, as well as an investment advisor attached to a stockbroker firm. Orders had been placed for trading in the Laugfs Gas PLC shares on October 7 and 10, 2011, using the Central Depository System (CDS) accounts of certain clients of the stockbroker firm of the aforesaid investment advisor by the use of several manipulative devices. Justice Ranga Dissanayake, having taken cognizance of the submissions of 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 December 13.