Claridge Stockbrokers’ licence extended pending inquiry
View(s):Sri Lanka’s stock market regulator which is probing Claridge Stockbrokers, part of Mackwoods Group, over non-compliance issues has decided to further extend the renewal date of Claridge’s licence.
Claridge transferred sales funds to Browns Group (Browns) despite the Securities and Exchange Commission (SEC) issuing a directive suspending the sale of a 60.8 per cent stake in Agalawatte Plantations Plc owned by Mackwoods Plantations Pvt Ltd to Browns.
The investigation by the SEC on this issue is still ongoing. Sources told the Business Times that Claridge’s licence was up for renewal in October. “Then since this investigation wasn’t completed SEC decided to further extend it by another month. The decision was taken at the recent SEC meeting,” he said.
A family feud over ownership of the Mackwoods Group between its chairman Chris Nonis and related parties and his sister Nirmalie Samaratunga and connected parties has resulted in too many issues at the group.
The SEC was very critical of Claridge and said in a public statement that the sale of the controlling stake in Agalawatte Plantations (to Browns) was in violation “of the written instructions issued to Claridge” and contrary to a directive issued by the SEC is a serious breach of discipline and a matter on which the SEC takes very serious cognizance. “Your conduct is aggravated by the fact that Claridge Stockbrokers Pvt Ltd is a company in which Dr. Chrishantha Nonis has an interest,” the statement said.