Sept 08, 2011 (LBO) – Sri Lanka’s Securities and Exchange Commission has fined Environmental Resources Investments and three directors for giving misleading information and not revealing material information about the firm in time.
SEC said it started a probe on stock exchange filings made by ERI and found that the firm and its directors had broken securities rules through “non-disclosures and dissemination of misleading information”.
The firm claimed to own stock in platinum mines and was engaged in several transactions with related parties.
The non-disclosure and misleading information concerned related party transactions and cross border investments. The information was eventually disclosed one year later, the SEC said.
The SEC ‘compounded’ the offence where the firm and directors made a payment without going to court as permitted by Sri Lanka’s securities laws. The SEC said if the firm was taken to court it would have resulted in a fine of 10 million rupees.
ERI has been asked to pay 3.3 million rupees, executive directors Kosala Heengama and Gregory Scott Newsome 3.3 million rupees each and chairman Lalith Heengama 500,000 rupees.
Independent directors G S Munasinghe and H B Dissanayake have been warned.
source - www.lbo.lk
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