Business Times

Stock market 'mafia' controls the market: Vignarajah

By Quintus Perera

Good governance activist K.C. Vignarajah, now a valiant crusader to save the country's share market from the grips of manipulators, says the Colombo bourse has a long way to go in getting rid of the 'Insider Dealings Mafia' and ensuring a properly-regulated market.

In an interview with the Business Times (BT) where he elaborated on issues confronting the market, he said when bad practices go undetected and the wrong-doers are not punished, investor confidence and the faith in the market fades away. Proper governance of the public listed companies and the market as a whole would enhance investor confidence and do justice to the minority shareholders.

"Rampant insider trading or 'front running', market manipulation, suppression and often misleading information, unavailability of material information in a timely manner are some of the factors that have led to the loss of investor confidence," he said, adding that insider dealings of company directors, public brokers and others with inside knowledge constitute a substantial portion of wrong-doing.

Conflicts of interest are some of the matters in many areas which again erode confidence of investors.
He said deals like NSB-TFC and Watawala Plantations, and EPF-ETF investments are being questioned by eminent analysts and knowledgeable law makers. Mr Vignarajah acknowledged that there are many people who are supportive of his cause to ensure equal opportunities for all in the market, but unfortunately they are reluctant to come to the public arena or make public these concerns.

He said that there are many who are knowledgeable and interested in the health and sustainability of the Colombo Stock Exchange (CSE) and are also aware of the rampant insider trading in CSE. Among them are genuine investors, senior editors, journalists, analysts, stockbrokers, parliamentarians and economists. Lack of effective action to curb errant Controlling Interest shareholders (CI) and creating 'Shareholder Fatigue' by stealthily acquiring more shares through related parties (Insider Trading); denial/suppression of real and intangible assets and fair value thereof, are other issues confronting the market.

Top to the page  |  E-mail  |  views[1]
SocialTwist Tell-a-Friend
 
Other Business Times Articles
Missing sugar from Sevanagala
Uncertain, World Bank-funded tourism project finally off the rail
SL medical transcription to grow in insurance sector
Inaugural meeting of proposed investors association
Dialog launches ground-breaking easy payment mobile facility
LINK LANKA tackles digital taxi meter demand
Comment - Conflict of interests Sri Lankan-style
Conflicts-Play of interests
Three trade secrets on successful powerful corporate presentations
Stock market 'mafia' controls the market: Vignarajah
Sri Lanka Tourism gets ‘Googled’
Sri Lanka receives highest, ever value FDI project - US$4 bln, says BOI
95% of Carson Group workforce in Indonesia, Malaysia and India
Singer adds Huawei smart phones
Debt-free Access Engineering records Rs 2 bln in pre-tax profits
Telecommuting as an option to stressed travel
Vietnam travel promotion in Colombo
Union Bank goes for TV banking
Pushing the power of Asia
National consumer welfare policy for Sri Lanka
CSE detects 20 suspected malpractices; resolves 44 investor complaints in 2011
Trade policy challenges for Sri Lanka in the post-conflict Era
Top corporates and professionals to speak at 2012 SAFA-CMA Summit
SIA offers 2 biz class tickets to any destination in online competition
Spa Ceylon gives Ceylon Tea a new fillip
Colombo bourse up on policy rates, rupee depreciation
SEC further 'grills' NSB-TFC deal culprits
Rupee depreciation beneficial to Spence
Foreign visitors on upward drive
Taj Samudra organizes clean up of Galle Face Green

 

 
Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 1996 - 2012 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved | Site best viewed in IE ver 8.0 @ 1024 x 768 resolution