Sri Lanka’s Securities & Exchange Commission files action for insider dealing

Mar 31, 2019 (LBO) – Sri Lanka's Securities & Exchange Commission has filed an action before the Fort Magistrate’s Court against Dr. Sena Yaddehige, for dealing in the shares of Kegalle Plantations. The commission says being the Chairman of the Company, just before a 45 rupees dividend was declared by Kegalle Plantations on 10th July 2015, which is in breach of Section 32 of the SEC Act No. 36 of 1987 (as amended). The SEC said in a statement that it also cited Subramanium Thinamany as a defendant in this case for aiding and abetting Dr. Yaddehige to commit the offence of insider dealing. The Magistrate having taken cognizance of the submissions of Sudarshana De Silva, Deputy Solicitor General of the Attorney General’s Department who appeared for the SEC, issued summons on Dr. Yaddehige and Thinamany to appear before the Magistrate on 28th March 2019. On that day Thinamany has appeared before the Magistrate while the Attorney-at-Law who represented Dr. Yaddehige took notice of the next date Dr. Yaddehige was required to appear before the Learned Magistrate. Meanwhile, on 21st March 2019, an order was sought from the Court of Appeal by Dr. Yaddehige in the Writ application filed by him against the SEC, to stay the proceedings of the Magistrate’s Court. Shaheeda Barrie, Senior State Counsel of the Attorney General’s Department making submissions on behalf of the SEC objected to Dr. Yaddehige’s request. Upon hearing the submissions of both parties the Court of Appeal bench comprising Justice Kumudini Wickramasinghe and Justice Mahinda Samayawardane refused to grant the interim relief sought by Dr. Yaddehige.