May 24, 2012 (LBO) – Sri Lanka’s securities watchdog has suspended the chief executive of Taprobane Securities Private Limited, pending a probe related to a controversial share transaction between a stat bank and a troubled finance company.
In a directive to the chairman and board of directors of Taprobane Securities on May 23, the Securities and Exchange Commission asked the CEO/Managing Director Dinal Wijemanne be suspended immediately.
It also asked the board to ensure Wijemanne does not operate in any other capacity for an behalf of Taprobane Securities, until the investigations are completed.
Wijemanne has been embroiled in the sale of The Finance Company Limited shares to state-run National Savings Bank at a steep premium.
The state bank bought 13 percent stock of the loss-making finance company from a consortium of buyers including Wijemanne. Taprobane Securities acted as the broker for the buyer and the seller.
The savings bank failed to honour the payments, after its unions petitioned the president and the treasury chief. The deal was later aborted on the directives of the president.
The SEC last week allowed the transfer of shares to take place off-the trading floor and imposed stiff regulations on stockbrokers, the NSB and the sale of future large parcels.
Full statement below:
SEC Media Release – 24th May 2012
Notice of Directive issued on the Chairman and Board of Directors of Taprobane Securities (Pvt) Ltd to suspend the CEO/Managing Director of the Company from functioning in that capacity or in any other capacity for and on behalf of the Company pending the conclusion of investigations by the SEC.
The Securities and Exchange Commission of Sri Lanka (SEC) issued a Directive dated 23rd May 2012 to the Chairman and Board of Directors of Taprobane Securites (Pvt) Ltd to suspend with immediate effect Mr. Dinal Wijemanne CEO/ Managing Director of Taprobane Securites (Pvt) Ltd from functioning in that capacity or in any other capacity for and on behalf of the above said Company pending the conclusion of the investigations by the SEC.
This decision was taken by the Commission at its 301st Meeting held on 22nd May 2012 inter alia as a necessary interim measure conducive to the continuation of investigations launched by the SEC into the activities of the role played by the Stockbroker - Taprobane Securities (Pvt) Ltd and its CEO/Managing Director Mr. Dinal Wijemanne in respect of the transaction of The Finance PLC shares by National Savings Bank (NSB) through the Stockbroker firm Taprobane Securities (Pvt) Ltd on 27thApril 2012.
source - www.lbo.lk
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