The Securities and Exchange Commission of Sri Lanka (SEC) on July 25, 2019 filed action before the Fort Magistrate’s Court against Lanka Kannangara, Fariq Furkhan, Kapila Senarath Bandara, Raveendra Mallawarachchi for market manipulation, conspiracy to commit market manipulation and aiding & abetting with respect to the shares of Radiant Gems International PLC (RGEM) listed on the Colombo Stock Exchange during the period September, 2 to 29, 2011.
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 Rs. 50,000 and not exceeding Rs. 10 million or to both such imprisonment and fine, SEC said.
“The aforesaid defendants being investment advisors of different Stockbroker firms, had placed orders in the RGEM share using the CDS accounts of certain clients of such Stockbroker firms during September 2- 29, 2011, by the use of several manipulative devices. Such share trading executed by the aforesaid defendants has created a false and misleading appearance of active trading, with respect to the market and the price of the RGEM share, in contravention of Rule 12 of Securities and Exchange Commission of Sri Lanka Rules, published in 2001 (SEC Rules),” SEC release added.
Charges against the defendants are for market manipulation, conspiracy to commit market manipulation and aiding & abetting under provisions of sections 102, 113A of the Penal Code of Sri Lanka read with Rule 12 of the SEC Rules and Section 51(1)(a) punishable under Section 51(2) of the Securities and Exchange Commission of Sri Lanka Act No.36 of 1987 (as amended). Ranga Dissanayake, the Learned Magistrate, having taken cognizance of the submissions of Sudarshana De Silva, Deputy Solicitor General of the Attorney General’s Department who appeared on behalf of the SEC, issued summons on the defendants to appear before the Magistrate on August 29, 2019, SEC said in a press release.
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