Regulatory Alerts2017-01-18
SEC Sri Lanka Directive Prohibiting Related Party Transactions for Swarnamahal Financial Services PLC
The Securities and Exchange Commission of Sri Lanka issued a directive to Swarnamahal Financial Services PLC prohibiting all related party transactions and debt write-offs until corporate governance rules are met. This action addresses the company's repeated non-compliance with Listing Rules, extensive unregulated related party dealings, and a negative net asset value exceeding Rs. 1 billion. The prohibition remains effective until the company demonstrates compliance with Rules 7.10.2(a), 7.10.5(a), and 7.10.6(a) of the Colombo Stock Exchange Listing Rules.
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