High profile brokers in the dock
Some high profile stockbrokers are in the dock over asset declaration related issues, the Business Times reliably learns.According to official sources, the Financial Crimes Investigation Division (FCID) has recorded the statements of these brokers over probes that are not related to market manipulation or insider dealing. “They were on questions on how they have accumulated assets worth billions of rupees,” one source told the Business Times. He said the Securities and Exchange Commission (SEC) had also warned a few stockbrokers verbally since January 2015 for upsetting the stock exchange and disruptive behaviour.
Meanwhile some high profile offenders of the share market are expected to be prosecuted this year. “Some of them are ‘clearly’ guilty of certain irregularities, especially insider trading during the 2011-2013 period. There was no action taken against them, mainly because they were members or connected to the stock mafia,” he said .Probes of market manipulation and insider trading against 17 investors, brokers and institutions, including high-profile businessmen were nearing completion in August 2012 when some powerful investors complained to President Mahinda Rajapaksa against then SEC Chairman Thilak Karunaratne forcing the latter to step down. The probes were resumed after Mr. Karunaratne was re-appointed last year