Region

Jurisdiction

Regulator

2014-08-15

SEC Directive on Compensation by Adam Investments PLC for Cancelled PC Pharma PLC Trades

The Securities and Exchange Commission of Sri Lanka directed Adam Investments PLC to compensate investors for consequential losses resulting from cancelled PC Pharma PLC trades. This order was issued because Adam Investments violated the Takeovers and Mergers Code, necessitating the trade cancellation between 2:12:19 pm and 2:30 pm on 7th August 2014. Investors who suffered losses must submit their claims to Adam Investments within one calendar month from the date of the directive.

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 / Registered Post

14th August 2014

Ref: SEC/LEG/14/08/17

To: Adam Investments PLC

Directive issued under Section 13 (cc) in terms of 13 (n) and (p) in pursuance of Section 12 (b) 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) at its 342nd meeting held on 12th August 2014 deliberated on the consequential losses that may arise out of the cancellation of trades of PC Pharma PLC on 7th August 2014 between 2:12:19 pm and 2:30 pm effected by SEC directive SEC/LEG/12/08/11 dated 11th August 2014 necessitated by the conduct of Adam Investments PLC acting in violation of the Takeovers and Mergers Code.

The Commission acting under the powers vested in Section 13(n) and 13(p) of the Securities and Exchange Commission of Sri Lanka Act No: 36 of 1987 (as amended) in furtherance of protection of the interest of investors; decided to direct Adams Investments PLC to compensate investors if any who has suffered consequential losses as a result of the cancelled trades falling within the aforementioned period.

Therefore the Commission hereby directs Adam Investments PLC;

To compensate investors if any that may have suffered consequential losses arising directly out of the cancelled trades of PC Pharma PLC on 7th August 2014 between 2:12:19 pm and 2:30 pm, who forward their claims within one calendar month from the date hereof.

This directive shall be effective from the date hereof.

(Signature)

Dhammika Perera

Officer-in-Charge/ Deputy Director General AA/SW CC: Mr. Rajeeva Bandaranaike, Chief Executive Officer, Colombo Stock Exchange