Regulatory Alerts2024-01-01
SEC Directive 15 05 2024
The Securities and Exchange Commission of Sri Lanka directs the Colombo Stock Exchange to enforce disciplinary actions against listed entities and directors for specific non-compliances. This directive addresses violations of Listing Rules 7.8 regarding director and CEO dealings disclosures and Rule 9.17 concerning corporate governance failures. These enforcement measures were authorized following the Commission's 500th Meeting on May 7, 2024, and the rules are effective immediately.
SEC SECURITIES AND EXCHANGE COMMISSION OF SRI LANKA Office of the Director General ශ්රී ලංකා සුරැකුම්පත් සහ විනිමය කොමිෂන් සභාව இலங்கை பிணையங்கள் மற்றும் பரிவர்த்தனை ஆணைக்குழு
BY HAND
Ref: SEC/DG/2024/05/119
15th May 2024
TO: THE COLOMBO STOCK EXCHANGE
DIRECTIVE ISSUED IN TERMS OF SECTION 16(c) TOGETHER WITH SECTIONS 26(5), 178(5)(a), 81(3), 175(1)(a) AND 175(4) OF THE SECURITIES AND EXCHANGE COMMISSION OF SRI LANKA ACT NO. 19 OF 2021
The Securities and Exchange Commission of Sri Lanka (SEC) further to the SEC Directive dated 06th October 2023 bearing reference SEC/LEG/23/10/07 hereby directs the Colombo Stock Exchange (CSE) to take disciplinary actions and/or administrative sanctions against Listed Entities and/or its Directors in respect of the following additionally identified key non-compliances in relation to the Listing Rules of the CSE, pursuant to the decision of the Commission taken at its 500th Meeting held on 07th May 2024 having considered the discussions held with the CSE in respect of the same:
- Rule 7.8 – Disclosures of dealings by Directors and CEOs; and
- Rule 9.17 – Non-compliance with Corporate Governance
The aforesaid Listing Rules will be effective from the date hereof.
(Signature)
Chinthaka Mendis DIRECTOR GENERAL RB/ew
28 වන මහල, කොටුව, කොළඹ 01. 28 மற்றும் 29 ஆம் மாடி, உலக வர்த்தக மையம், கொழும்பு 01. Level 28 & 29, East Tower, World Trade Center, Echelon Square, Colombo 01, Sri Lanka.
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