May 30, 2008 (LBO) – Sri Lanka securities watchdog said Nawaloka director Jayantha Dharmadasa has been fined over a price manipulation case involving the shares of a hospital firm. The Securities and Exchange Commission said in a notice that Dharmadasa had been fined 3.3 million rupees following a request to ‘compound’ a case a under a procedure allowed in Sri Lanka securities laws.
He was originally charged for “conspiring to commit acts to create a false/misleading appearance of active share market” in involving several others relating to trading of Nawaloka Hospitals Limited shares.
The request to ‘compound’ the case by paying a fine came after the case was filed in Colombo Fort magistrate court, the SEC said.
“Taking account of all the attendant circumstances, it was decided by the Members of the Commission to allow the compounding of the offence upon payment of Rs. Three Million and Three Hundred Thousand (3.3 Million), i.e. 1/3 rd of the maximum fine imposable for the said offence.”
The money has since been credited to an SEC compensation fund.