The Offence of Market/Price Manipulation
Type of enforcement action
Name of Party
Conduct and outcome
Compounding
W.K.H. Wegapitiya
Action was filed by the Securities and Exchange Commission of Sri Lanka (SEC) against W.K.H. Wegapitiya for offences of conspiracy to commit Market Manipulation and committing Market Manipulation under the provisions of the then Securities and Exchange Commission of Sri Lanka Act No 36 of 1987 as amended before the Magistrates’ Court, Fort in Case bearing No 16967/20, in respect of the shares of Laugfs Gas PLC (LGL) during the period 07th to 10th October 2011.
An application was made in Court by the Counsel representing W.K.H. Wegapitiya in order for the SEC to consider compounding these offences in terms of Section 51A of the then Securities and Exchange Commission of Sri Lanka Act No 36 of 1987 as amended.
Having considered the loss caused to the Employees’ Provident Fund (EPF), the time since the said offences were committed, accused agreeing to settle the loss caused to the EPF, other pending litigation connected to this case, and the absence of previous convictions, the Commission decided to consider the application to Compound the said offences upon the payment of a sum of Rs. 6.6 Million to the Compensation Fund of the SEC by this accused.
This compounding was effected following W.K.H. Wegapitiya together with the other accused in this case, U.K. Tilak N de Silva and T. I. Hulangamuwa agreeing to settle the EPF the excess amount of Rs. 231 Million paid by the EPF in respect of the 33 Million shares of Laugfs Gas PLC bought at Rs. 48/- on 10th October 2011.
The amounts referred to above were settled to the EPF and to the SEC in open Court by W.K.H. Wegapitiya and the other two accused when the matter was called before the Learned Magistrate on 19th July 2024 and the said funds were duly credited to the EPF and to the Compensation Fund of the SEC respectively.
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Date of Issue: 19th July 2024
Compounding
U.K. Tilak N de Silva
Action was filed by the Securities and Exchange Commission of Sri Lanka (SEC) against U.K. Tilak N de Silva for offences of conspiracy to commit Market Manipulation and aiding and abetting two others to commit Market Manipulation under the provisions of the then Securities and Exchange Commission of Sri Lanka Act No 36 of 1987 as amended before the Magistrates’ Court, Fort in Case bearing No 16967/20, in respect of the shares of Laugfs Gas PLC (LGL) during the period 07th to 10th October 2011.
An application was made in Court by the Counsel representing U.K. Tilak N de Silva in order for the SEC to consider compounding these offences in terms of Section 51A of the then Securities and Exchange Commission of Sri Lanka Act No 36 of 1987 as amended.
Having considered the loss caused to the Employees’ Provident Fund (EPF), the time since the said offences were committed, accused agreeing to settle the loss caused to the EPF, other pending litigation connected to this case, and the absence of previous convictions, the Commission decided to consider the application to Compound the said offences upon the payment of a sum of Rs. 9.9 Million to the Compensation Fund of the SEC by this accused.
This compounding was effected following U.K. Tilak N de Silva together with the other accused in this case, W.K.H. Wegapitiya and T. I. Hulangamuwa agreeing to settle the EPF the excess amount of Rs. 231 Million paid by the EPF in respect of the 33 Million shares of Laugfs Gas PLC bought at Rs. 48/- on 10th October 2011.
The amounts referred to above were settled to the EPF and to the SEC in open Court by U.K. Tilak N de Silva and the other two accused when the matter was called before the Learned Magistrate on 19th July 2024 and the said funds were duly credited to the EPF and to the Compensation Fund of the SEC respectively.
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Date of Issue: 19th July 2024
Compounding
T. I. Hulangamuwa
Action was filed by the Securities and Exchange Commission of Sri Lanka (SEC) against T. I. Hulangamuwa for offences of conspiracy to commit Market Manipulation and committing Market Manipulation under the provisions of the then Securities and Exchange Commission of Sri Lanka Act No 36 of 1987 as amended before the Magistrates’ Court, Fort in Case bearing No 16967/20, in respect of the shares of Laugfs Gas PLC (LGL) during the period 07th to 10th October 2011.An application was made in Court by the Counsel representing T. I. Hulangamuwa in order for the SEC to consider compounding these offences in terms of Section 51A of the then Securities and Exchange Commission of Sri Lanka Act No 36 of 1987 as amended.
Having considered the loss caused to the Employees’ Provident Fund (EPF), the time since the said offences were committed, accused agreeing to settle the loss caused to the EPF, other pending litigation connected to this case, and the absence of previous convictions, the Commission decided to consider the application to Compound the said offences upon the payment of a sum of Rs. 6.6 Million to the Compensation Fund of the SEC by this accused.
This compounding was effected following T. I. Hulangamuwa together with the other accused in this case, W.K.H Wegapitiya and U.K. Tilak N de Silva agreeing to settle the EPF the excess amount of Rs. 231 Million paid by the EPF in respect of the 33 Million shares of Laugfs Gas PLC bought at Rs. 48/- on 10th October 2011.The amounts referred to above were settled to the EPF and to the SEC in open Court by T. I. Hulangamuwa and the other two accused when the matter was called before the Learned Magistrate on 19th July 2024 and the said funds were duly credited to the EPF and to the Compensation Fund of the SEC respectively.
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Date of Issue: 19th July 2024
Warning
Kulasinghe Sidath Kumara
The Commission decided to issue a letter of Warning to this individual for making or publishing certain posts on social media which appears to contain false/misleading information relating to securities that are listed on the Colombo Stock Exchange, without taking reasonable care to check the accuracy of such statements or information in a manner that can influence investors to make investment decisions with regard to those securities and thereby contributing towards creating a false market in respect of the said securities.
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Date of Issue:
20th May 2024
Warning
Thuiyalage Omesh Viraj
The Commission decided to issue a letter of Warning to this individual for his conduct in creating significant price increments artificially in certain shares listed on the Colombo Stock Exchange during the period 01st January 2021 to 27th August 2021 in a manner which may cause Market / Price Manipulation in violation of Rule 12 of the SEC Rules, published in Gazette Extraordinary No.1215/2 dated 18th December 2001.
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Date of Issue:
20th February 2024
Warning
Mohammed Husain Nassim Husain
The Commission decided to issue a letter of Warning to this individual for his conduct in creating price increments artificially in certain shares traded on the Colombo Stock Exchange during the period 1st September 2020 to 15th January 2021 which may cause Market/ Price Manipulation in the said securities in violation of Rule 12 of the SEC Rules published in the Gazette Extraordinary No 1215/2 dated 18th December 2001.
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Date of Issue:
19th February 2024
Warning
Muhammad Shiraz Latiff Abdeen
A Warning was issued to Mr. Abdeen for market manipulation in terms of Rule 12 of the SEC Rules 2001, with regard to his conduct pertaining to trading in the shares of LOLC Development Finance PLC (NIFL) during the period from10th June 2021 to 30th June 2021.
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Date of Issue:
30th January 2024
Caution
Keshawa Nagarathne
This individual, has sold 1 share each in 182 securities at a lower price in comparison to the closing price of the previous day on 8th December 2023, through his CDS Account (881293838-VN).
The Commission decided to issue a notice of caution against engaging similar conduct which may cause Market/ Price Manipulation of listed securities in violation of Section 129 of Securities and Exchange Commission of Sri Lanka Act No. 19 of 2021 (SEC Act).
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Date of Issue: 18th January 2024
Compounding
Daya Gamage
Upon a request to compound the offences of Market Manipulation in violation of Rule 12 of the Securities and Exchange Commission of Sri Lanka Rules, in the shares of Bimputh Finance PLC (BLI) during the period, 16th January to 20th March 2014 and conspiracy thereto, found to have been committed by this individual, the Commission decided to compound the said offences in terms of section 51A of the then Securities and Exchange Commission of Sri Lanka Act No. 36 of 1987 upon the payment of a sum of Rs. 3.3 Million to the Compensation Fund of the SEC within one month.
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Date of Compounding: 20th October 2023
Compounding
Chamindra Gamage
Upon a request to compound the offences of Market Manipulation in violation of Rule 12 of the Securities and Exchange Commission of Sri Lanka Rules, in the shares of Bimputh Finance PLC (BLI) during the period, 16th January to 20th March 2014 and conspiracy thereto, found to have been committed by this individual, the Commission decided to compound the said offences in terms of section 51A of the then Securities and Exchange Commission of Sri Lanka Act No. 36 of 1987 upon the payment of a sum of Rs. 3.3 Million to the Compensation Fund of the SEC within one month.
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Date of Compounding: 20th October 2023
Compounding
L.S.S. Perera
Upon a request to compound the offence of aiding and abetting another to commit market manipulation under Rule 12 of the Securities and Exchange Commission of Sri Lanka Rules in the shares of Commercial Leasing & Finance PLC (CLC) during the period, 09th – 25th August 2021 and conspiracy thereto found to have been committed by this individual, the Commission decided to compound the said offences in terms of section 51A of the then Securities and Exchange Commission of Sri Lanka Act No. 36 of 1987 upon the payment of a sum of Rs. 3.3 Million to the Compensation Fund of the SEC within one year.
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Date of Compounding: 27th September 2023
Compounding
K.D Gunaratna
Upon a request to compound, , with regard to creating a false market or misleading appearance of active trading in the shares of Commercial Leasing & Finance PLC (CLC) during the period, 09th – 25th August 2021, which is an offence under Rule 12 of the Securities and Exchange Commission of Sri Lanka Rules, the Commission decided to compound the offence as provided for under section 51A of the Securities and Exchange Commission of Sri Lanka Act No. 36 of 1987 upon the payment of a sum of Rs. 3.3 Million to the Compensation Fund of the SEC.
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Compounded on – 14th October 2022
Compounding
W.D.N.H Perera
Upon a request to compound, with regard to creating a false market or misleading appearance of active trading in the shares of Regnis Lanka PLC (REG) during the period , 13 September – 13th October 2011, which is an offence under Rule 12 of the Securities and Exchange Commission of Sri Lanka Rules, the Commission decided to compound as provided for under section 51A of the Securities and Exchange Commission of Sri Lanka Act No. 36 of 1987 upon the payment of a sum of Rs. 3.3 Million to the Compensation Fund of the SEC.
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Compounded on – 02 September 2022
Compounding
W.D.N.H Perera
Upon a request to compound, with regard to creating a false market or misleading appearance of active trading in the shares of ASCOT Holdings PLC during the period 05th September to 12th September 2011, which is an offence under Rule 12 of the Securities and Exchange Commission of Sri Lanka Rules, the Commission decided to compound as provided for under section 51A of the Securities and Exchange Commission of Sri Lanka Act No. 36 of 1987 upon the payment of a sum of Rs. 3.3 Million to the Compensation Fund of the SEC.
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Compounded on 02nd September 2022
Kindly note that the names of certain personnel against whom enforcement action were taken in the past pertaining to this offence have been removed in accordance with the retention policy for publications.