SEC probe against trader

The Securities and Exchange Commission (SEC) has barred licensed or registered stockbrokers from taking Mahanama Jayaweera on board with effect from December 5.

SEC sources said this ruling will apply until a current action against Jayaweera is completed.

The SEC filed action against Jayaweera charging him for offences relating to creating misleading impression of active trading in securities and the price of securities listed on the stock exchange.

The regulator has also sent a show cause letter to Jayaweera’s former employer, Ceylinco Stockbrokers requesting why the company’s license should not be cancelled, under section 19 of the SEC Act and has asked them to report to SEC by next week.

This has come on the back of the SEC initiating action in the Magistrate's Court, Fort in October against Sajee Lakshman Perera for insider dealing. Perera was found guilty of ‘creating a false or misleading appearance or impression with respect to the market and/or price of the Ceylon Grain Elevators Limited share, in contravention of the provisions contained in Rule 12 of the SEC Rules and providing the SEC with untrue, incorrect and/or misleading information during the course of its investigation’. However, the Commission acceded to the appeal subject to the settlement of this sum in full on October 25, the sources said.