LBO Home IndoChina | About Us | To Advertise | Contact Us rss LBO Mobil rss rss rss rss rss
Sat, 20 December 2014 05:57:01
Sri Lanka broker compensates client for unauthorized trading
02 Dec, 2012 21:16:03
Dec 02, 2012 (LBO) - A Sri Lankan stock broking firm has compensated a client who complained to the Colombo Stock Exchange alleging unauthorized trading which led to massive losses during a collapsed stock market bubble.
Taprobane Securities Ltd has paid back a client 3.4 million rupees following a ruling by the dispute resolution panel of the Colombo bourse, after he alleged losses of up to 10 million rupees.

The client alleged that his broker had leveraged his portfolio traded with credit without authority in 2011 while he was away from the country and had delayed a request made upon his return to liquidate the portfolio for several months.

He alleged that he had then been assigned another broker by Taprobane Securities who had been barred from trading earlier by the Securities and Exchange Commission.

He had complained that officials at the broking firm had persuaded him not to liquidate and hold on for a few more months and that his account had been subjected to 'churning' (repeated trading conducted to earn commission).

The stock exchange had ruled that the client be compensated for losses made on credit without his authority.

Taprobane Securities, chief executive had earlier been removed by the regulator following a controversial deal involving the attempted sale of a finance company stock to state-run National Savings Bank at an inflated price.

Sri Lanka's stocks rose up to late 2011 amid a massive credit bubble fired by excess liquidity in money markets but later collapsed in a balance of payments crises.

Your Comment
Your Name/Handle
Your Email (Your email will not be displayed)
Location
Country
Your Email
Receivers Email
Your Comment
 
READER COMMENT(S)
3. Murshid Dec 03
Sri Lankan Law applies only for the small fish. It will apply for big fish, only if they go against the Number One.
2. sprat season Dec 03
When are they going to haul in the big fish? These are just bystanders in the whole saga
1. Shan de Mel Dec 03
What, just pay back the money and Taprobane Securities can be back in business? What a wonderful country to be a crook. Wonder of Asia, a Land Like No Other.