SEC reprimands U.H. Dharmadasa

The Securities and Exchange Commission of Sri Lanka (SEC) has issued a severe reprimand on Director, Nawaloka Group of Companies Harshith Dharmadasa after charges for market manipulation against him were withdrawn by the Commission on the advice of the Attorney General, said a SEC media release.

The SEC withdrew charges against Dharmadasa subject to a severe reprimand with the sanction of court recently in the case which was filed against him on charges of market manipulation in relation to the shares of Nawaloka Hospitals Ltd.

This decision was taken by the Commission on the advice of the Attorney General. Harshith Dharmadasa along with eight others who were charged in the Magistrate's Court, Fort for alleged Market Manipulation in respect to the shares of Nawaloka Hospitals Ltd for pushing the price of a share up from Rs. 2 to Rs. 9 after a share split within a short period of time. The charges against Dharmadasa related to an alleged conspiracy to commit acts to create a misleading appearance of an active market in relation to the price of securities of Nawaloka Hospitals and for allegedly committing acts to create a misleading false appearance of an active market for the price of shares of Nawaloka Hospitals Ltd., which is a public listed company.

The Attorney General taking into consideration that the Chairman of the Company Dharmadasa had accepted responsibility and compounded the offence for Rs. 3.3. million taken together with the facts and circumstances of the case, advised the SEC that discontinuing proceedings against Dharmadasa upon issuing a severe reprimand would not jeopardize the interests of justice. However the trial will continue against the remaining accused whose offences have not been compounded, the release said.