Sept 15, 2011 (LBO) - Sri Lanka's Securities and Exchange Commission has earned praise from a lawmaker for taking action against suspected cases of stock manipulation, but he says the names of the people involved should be revealed.
"We welcome the decision by SEC to finally initiate action on alleged manipulators at the Colombo Stock Exchange," opposition lawmaker Harsha de Silva said in a statement.
"We feel that our continuous struggle for greater transparency at the CSE has begun to pay off towards creating a well governed and equitable securities market in Sri Lanka."
SEC said yesterday that it would file charges against one stock broker and five others including two market players had been warned.
"As per the SEC statement, we note with regret that the identities of the two investors, five investment advisors and the three stock broking firms who have been found to have manipulated the market during the period of investigation have not been revealed," de Silva said.
"Unless these names are made public the small investor community will continue to be hood-winked by these bad eggs causing them financial losses.
"In the interest of greater transparency and good governance we urge that the SEC immediately reveal their identities."
De Silva said it was "interesting to note" that the SEC had probed unusual price movements in securities of Environment al Resources Investments, which was recently fined for delayed disclosures and Dankotuwa Porcelain, a firm which ERI had invested in.
De Silva was said SEC should not have let former civil servants who were directors of the firm off as lightly as the regulator did..
They included a former central bank governor, director general of customs and former ambassador.
source - www.lbo.lk
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