SEC extends ban on Nation Lanka Equities
The Securities Exchange Commission (SEC) has extended the ban on Nation Lanka Equities (Pvt) Ltd from canvassing for new clients due to continuous non-compliance with the SEC Act and stockbroker rules of the Colombo Stock Exchange (CSE), sources said. The SEC had deliberated on the matter last month after Nation Lanka Equities had brought Rs. 60 million into the company and sent a letter to say that they will bring in the balance Rs. 40 million, but the regulator was dissatisfied with the explanations provided and decided to extend this ban, an SEC source told the Business Times.
Nation Lanka Equities was suspended for three months effective last November from canvassing any new business. The matter had come up at the Commission meeting on January 29 and the SEC decided to extend this ban. Nation Lanka Equities, owned by a consortium of investors, had brought in the Rs 60 million on a deposit by the Access Group. ”But it wasn’t capitalised (i.e. a fixed deposit) and the SEC wasn’t satisfied,” the source added.