Compounded

Aug 30, 2011 (LBO) – Sri Lanka’s securities watchdog has fined Environmental Resources Inc and several officers, over a disclosure related offence, market sources said. Sri Lanka’s Securities and Exchange Commission earlier sent the firm a notice of action, over a disclosure related matter.

Under Sri Lanka’s securities law, a person charged with securities fraud can agree to pay a ‘compound fee’ and avoid going to court.

Market sources said the company and three directors had been fined close to 10 million rupees.

A company official confirmed that it had settled with the SEC.

The SEC had earlier been probing the firm’s filings that it owned stock in a platinum mine and other securities of unlisted firms. ERI later said it had sold the mining stock and remitted cash to the firm.