* SEC amends related party transactions rules
* Analysts say new SEC rule will curb manipulation
* Rupee up on banks' dollar selling
COLOMBO, Sept 1 (Reuters) - Sri Lanka's benchmark share index rose to a new record on Wednesday, and the Securities and Exchange Commission (SEC) ordered listed companies to immediately disclose related party transactions.
Institutional and foreign investors have long clamoured for prompter disclosure of insider dealings, amid complaints of manipulation. Previously, related-party transactions were only only required disclosure in annual reports.
According to the ruling issued after trading closed on Wednesday, immediate disclosure is required for any related-party transaction which exceeds 10 percent of equity or 5 percent of total corporate assets.
"This is to keep investors better-informed about those transactions," Malik Cader, deputy SEC director, told Reuters. "What we say is immediately disclose any related-party transactions."
Sri Lanka's main share index .CSE closed 0.57 percent firmer at a new all-time closing high of 5690.29 points, after hitting a fresh intraday high of 5,719.19 points. The index is Asia's best performer in 2010 with a 68.6 percent gain.
Turnover was at 2.7 billion rupees ($24.2 million), around five times the 2009 daily average. Foreign investors sold a net 63.7 million rupees' in shares and have overall sold a net 11.5 billion rupees so far this year.
The rupee LKR= closed at 112.70/75 a dollar, firmer from Tuesday's 112.77/79 as banks sold dollars, dealers said.
FACTORS TO WATCH:
- Market reaction to the new SEC ruling
- Tax reforms promised by the government
- Market reaction to proposed constitutional changes, seen to give more power to the country's president.
source - www.reuters.com
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