Sri Lanka’s SEC charges Laugfs Gas directors, broker over stock manipulation
ECONOMYNEXT – Sri Lanka’s Securities and Exchange Commission said it had taken three persons to court on charges of manipulating stock of Laugfs Gas Plc, a company listed in the Colombo Stock Exchange.
The SEC said it had filed action in the Colombo Fort Magistrate’s Court against W.K.H. Wegapitiya, U.K. Thilak N. De Silva, who are chairman and managing director of Laugfs Gas and Thakshila I. Hulangamuwa an investment advisor at a stock broking firm.
They have been charged over market manipulation, conspiracy to commit market manipulation and for aiding & abetting in the offences.
“If found guilty the defendants shall be liable to an imprisonment of either description for a period not exceeding five years or to a fine not less than fifty thousand rupees and not exceeding ten million rupees or to both such imprisonment and fine,” SEC said in a statement.
SEC said orders had been placed for trading in the shares of Laugfs Gas on 07th and 10th October 2011 using the CDS accounts of certain clients of a broking firm, by the use of several manipulative devices.
“Such share trading executed had created a false and misleading appearance of active trading, with respect to the market and the price of the LGL share, in contravention of Rule 12 of Securities and Exchange Commission of Sri Lanka Rules,” the regulator said.
Colombo Fort Magistrate’s Magistrate Ranga Dissanayake had issued summons on the defendants to appear in court on December 13, 2019. (Colombo/Nov05/2019)