Quick Thinking

Sri Lankan Prime Minister Ranil Wickremasinghe (2nd R) arrives to visit the site of a bomb attack at St. Anthony's Shrine in Kochchikade in Colombo on April 21, 2019. - A string of blasts ripped through high-end hotels and churches holding Easter services in Sri Lanka on April 21, killing at least 156 people, including 35 foreigners. (Photo by ISHARA S. KODIKARA / AFP) (Photo credit should read ISHARA S. KODIKARA/AFP/Getty Images)

Market player N M Tony Perera compounded his case with the securities watchdog for an allegedly creating a false market by paying up a Rs. 50,000 fine, the regulator said Friday. Market player N M Tony Perera compounded his case with the securities watchdog for an allegedly creating a false market by paying up a Rs. 50,000 fine, the regulator said Friday. The Securities & Exchange Commission did not specify the alleged trade, but said that Perera had admitted the “trades in question had been carried out by him without any intention whatsoever of manipulating the market/price with respect to any share or creating a false market.”

The Commission compounded the case on February 15, and Perera paid up the fine on February 25.

Market/price manipulation usually occurs when investor A aids, abets and assists investor B to build up large positions in shares of company X. This facilitates market manipulation and later provides an exit route when the artificial increase in price is not sustainable.

The current bull run on the Colombo bourse where a few ‘penny stocks’ or low priced stocks are trading on large volumes, accounting for bulk of the day’s turnover, has led to spec