Insider trading probe over SLT shares

Recent Sri Lanka Telecom (SLT) share transactions have attracted the Securities and Exchange Commission's (SEC's) attention to ascertain whether there has been insider trading, according to stock market sources.

"Some individuals and companies that transacted on SLT shares, just before the badly kept secret of the NIT Corporation in Japan selling their stake to Global Telecommunications Holdings N.V. (GTH) being announced and selling what they bought after the deal went through has aroused the SEC's interest," according to a stock market source.

He said there may be serious allegations of insider trading on these transactions. "Some who transacted on the SLT shares are connected. This is what has kept the speculation going, but it is very difficult to prove," he added. Officials at the SEC were unavailable for comment on the investigation.