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Changing The Rules

While front running was included as a new offence, the new rules broadly look at facilitating deregulation process of the industry, SEC quote s Director Legal, Kithsiri Gunawardene told Lanka Business Online.

rnThe Securities and Exchange Commission quote s rules lay down the procedures to grant licences to the stock exchange, stockbrokers and stock dealers. It also incorporates the listing requirements and continuing listing requirement, which listed companies, should comply. The list includes specifying prospectuses quote contents, the criteria for admitting a company to be listed and de-listing of companies, and routine and non-routine corporate disclosures.

rnBrokers who front run the market endash or the process of when a broker takes a position in a security on prior knowledge of information that will influence the market price of that security endash would now be liable for a Rs. 10 mn fine or a five-year prison sentence under the new rules.

rnThe de-listing process for companies has also bee

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