Region

Jurisdiction

Regulator

2016-07-14

SEC Directive to Freeze Shares of Blue Diamonds Jewellery Worldwide PLC Chairman

The Securities and Exchange Commission of Sri Lanka issued a directive to the Colombo Stock Exchange to freeze all Blue Diamonds Jewellery Worldwide PLC shares held by Chairman Mr. Xia Liqiang. This action was taken due to a prima facie belief that Mr. Xia violated the SEC Act through the disposal of 15,146,200 shares on May 9, 2016. The freeze applies to his accounts and any beneficiary accounts until further notice from the Commission.

Sri Lanka

Securities and Exchange Commission of Sri Lanka

SEC SECURITIES AND EXCHANGE COMMISSION OF SRI LANKA ශ්‍රී ලංකා සුරැකුම්පත් සහ විනිමය කොමිෂන් සභාව | இலங்கை பிணையங்கள் மற்றும் பரிவர்த்தனை ஆணைக்குழு

By Hand/Fax

11th July 2016

Ref: SEC/LEG/16/07/04

To: The Colombo Stock Exchange

Directive issued in terms of Section 13 (c) of the Securities and Exchange Commission of Sri Lanka Act No. 36 of 1987 (as amended)

The Securities and Exchange Commission of Sri Lanka (SEC) having deliberated on the circumstances surrounding the disposal of a parcel of shares amounting to 15,146,200 of Blue Diamonds Jewellery Worldwide PLC (BLUE) held by Mr. Xia Liqiang of No. 49, Ring Road, Phase 01, IPZ, Katunayaka, the Chairman of BLUE on or about 09th May 2016, and having, on a prima facie basis, evidence to believe that Mr. Xia Liqiang may have carried out the said trade in violation of the provisions of the SEC Act and that such transaction may involve the commission of one or more offence(s) under the SEC Act, has commenced an investigation into the said transaction and the circumstances surrounding the said transaction.

Therefore the Colombo Stock Exchange is hereby directed to take appropriate steps to freeze all Blue Diamond shares in all CDS accounts under the name of Mr. Xia Liqiang and any other account of which he is a beneficiary, until further notice by the SEC.

This directive is effective from the date hereof.

(Signature)

Vajira Wijegunawardane DIRECTOR GENERAL

Copy: Mr. Xia Liqiang, The Chairman, Blue Diamonds Jewellery Worldwide PLC, No. 49, Ring Road, Phase 01, IPZ, Katunayaka.