SEC on Metropolitan share trades.....

The Securities and Exchange Commission yesterday sent the following release with regard to an investigation it conducted into trades in the shares of Metropolitan Resource Holdings Ltd.

'The Securities and Exchange Commission (SEC) by virtue of the powers vested in it under the provisions of the Securities and Exchange Commission of Sri Lanka Act No. 36 of 1987 (as amended), conducted an investigation into certain trades in the shares of Metropolitan Resource Holdings Ltd. executed by Mr. Dinesh J. Ambani of 30/4, Ward Place, Colombo 7 and M/s. Metropolitan Office (Pvt) Ltd., of 85, Braybrooke Place, Colombo 2 in order to ascertain whether said trades amounted to Market/Price Manipulation in terms of Rule 12 in Gazette bearing No. 1215/2 and dated 18th December 2001, which Rule was formulated by the SEC under Section 53 of the aforesaid Act.'

Since the evidence elicited during the course of the above investigation suggested that through the execution of the above trades, Mr. Dinesh J. Ambani and M/s. Metropolitan Office (Pvt) Ltd., had committed the offence of Market/Price Manipulation, Notice of Action was issued to them on February 10, 2005.

'Consequent to the Notice of Action being issued to Mr. Dinesh J. Ambani and M/s. Metropolitan Office (Pvt) Ltd., and action being filed against the said parties on the charge of Market/Price Manipulation, the SEC received a written communication dated 8th June 2005 from the Attorney-at-Law acting for the parties concerned informing the SEC that the trades in question had been carried out by them without any intention whatsoever of manipulating the market/price with respect to any share, and requesting the SEC to compound the offence in terms of the provision in the SEC Act.'

'The Commission at a Meeting held on June 8, 2005, having considered the circumstances in which the offence is alleged to have been committed, decided to compound the said offence in terms of Section 51A of the SEC Act for a sum of Rupees Three Million Three Hundred Thousand being paid to the SEC by each of the said parties, Dinesh J. Ambani and M/s. Metropolitan Office (Pvt) Ltd.'

'The aforesaid sums of Rupees Three Million Three Hundred Thousand were paid by Dinesh J. Ambani and M/s. Metropolitan Office (Pvt) Ltd. on August 5, 2005, and the offence compounded by the SEC.'

The aforesaid sums have since been credited to the Compensation Fund established under the SEC Act.' 'In terms of the SEC Act compounding does not entail a finding of guilt.'