Two investors taken to court over market manipulation 

The Securities and Exchange Commission of Sri Lanka (SEC) has filed action in the Magistrate’s Court, Colombo Fort against two investors on charges of market/price manipulation in doctor channelling company, E-Channelling PLC.

A media statement by the SEC said that the Magistrate’s Court has issued summons on the two accused namely Mohammed Imtiaz Samsudeen and Muhammed Bafiq Nizar.
 
“The action was filed on the basis of evidence elicited during the course of an investigation conducted by the SEC and upon receiving the formal opinion of the Attorney General. Rule 12 of the SEC Rules published in the Gazette Extraordinary No.1215/2 dated 18th December 2001 prohibits any person from creating or causing to create or from doing anything that is calculated to create a false or misleading appearance or impression of active trading or false or misleading appearance or impression with respect to the market for or the price of any securities listed on a licensed stock exchange,” the statement said.

It said that any person who is found guilty of an offence under the Act shall be liable on conviction after summary trial by a Magistrate to imprisonment of either description for a period not exceeding five years or to a fine not less than fifty thousand rupees and not exceeding Rs. 10 million or to both such imprisonment and fine. The matter is pending in Court and will be taken up on August 29. (DEC)