Regulatory Alerts2016-05-13
Stop Order on Payment of Trade Proceeds Due to Possible Capital Market Law Violation
The Securities and Exchange Commission of Sri Lanka has issued a directive to Capital Trust Securities (Private) Limited to withhold the sale proceeds from a recent share transaction involving Xia Liqiang, Chairman of Blue Diamonds Jewellery Worldwide PLC. The regulator suspects the disposal of 15,146,200 BLUE shares on 9 May 2016 may violate the Securities and Exchange Commission Act and is therefore freezing the funds pending further investigation. If the proceeds were already disbursed via cheque, the brokerage must immediately instruct the bank to stop payment and provide written confirmation to the SEC.
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