Legal Advice

Oct 14, 2009 (LBO) - Sri Lanka's Securities and Exchange Commission (SEC) said it had withdrawn charges of market manipulation case and issued a reprimand to a company director on the advice of the attorney general. The SEC withdrew charges against Mr. Harshith Dharmadasa subject to a severe reprimand with the sanction of Court recently in the case which was filed against him on charges of Market Manipulation in relation to the shares of Nawaloka Hospitals Ltd.

This decision was taken by the Commission on the advice of the Honourable Attorney General. Mr. Harshith Dharmadasa along with eight others were charged in the Magistrate’s Court Fort for alleged Market Manipulation in respect to the shares of Nawaloka Hospitals Ltd for pushing the price of a share up from Rs. 2/ to Rs.9/- after a share split within a short period of time. The charges against Mr Dharmadasa related to an alleged conspiracy to commit acts to create a misleading appearance of an active market in relation to the price of securities of Nawaloka Hospitals and for allegedly committing acts to create a misleading/false appearance of an active market for the price of shares of the said Nawaloka Hospitals Ltd., which is a public listed compan