Securities and Exchange Commission today announced that they approved the transferring of the shares under exceptional circumstances for the smooth functioning and the system stability of the payment and settlement cycle of the Capital Market of Sri Lanka.

The regulator however says, it will continue to investigate the above mentioned transaction and the parties involved in it to see whether any foul play has taken place.

It promises that firm action will be taken against all those who are found to have violated the SEC Act.

SEC Investigation commenced, following the Sri Lankan government took steps to cancel the TFC – NSB deal, which saw NSB purchasing 13% of the TFC shares for a sum of Rs. 400 million, which the market analyst said, was way too high.

Following is the full statement issued by the SEC

Transfer of The Finance Company PLC shares purchased by the National Savings Bank through the Colombo Stock Exchange

Taprobane Securities (Pvt) Ltd (TSL) and the National Savings Bank (NSB) by letters dated 11th May 2012 made an application to the Securities and Exchange Commission of Sri Lanka (SEC) seeking prior approval under Section 28 (1) of the SEC Act to transfer The Finance Company PLC (TFC) shares purchased by NSB on 27th April 2012 on the Colombo Stock Exchange (CSE) to persons identified by TSL outside the Trading Floor of the CSE.

TSL in their application undertook to pay Sampath Bank PLC the consideration due on this transaction including the interest due thereon in settlement of the monies due to Sampath Bank for the settlement services rendered by Sampath Bank on the share purchases done by NSB of TFC on the Trading Floor of the CSE on 27th April 2012.

NSB in their application also agreed to transfer TFC shares purchased on 27th April 2012 in its entirety to the persons identified by TSL outside the Trading Floor of the CSE. The NSB agreed to allow TSL to pay Sampath Bank the consideration sum due on this share transfer in satisfaction of the amounts due to Sampath Bank for the settlement services rendered on the share purchases transacted by them on the CSE on 27th April 2012.

Sampath Bank too intimated to SEC that the bank will discharge NSB and all parties connected with the impugned transaction, if TSL as undertaken by its letter pays Sampath Bank all sums due to them including interest/levies due thereon.

In terms of Section 28 (1), the SEC has the discretionary power to approve transfers outside the trading procedure of the CSE.

In this backdrop the SEC has granted approval to allow NSB to transfer TFC shares purchased on 27th April 2012 in its entirety to the persons identified by TSL outside the Trading Floor of the CSE. This approval has been granted under exceptional circumstances for the smooth functioning and the system stability of the payment and settlement cycle of the Capital Market of Sri Lanka. It is stressed that the SEC will not consider this instance of granting approval to conduct a trade of this nature off the Floor of the CSE as creating a precedence.

The SEC is separately investigating the above mentioned transaction and the parties involved in it. Firm action will be taken against all those who are found to have violated the SEC Act.

The SEC is currently studying this entire issue and expects to take a series of appropriate measures, rule and procedure changes to prevent such incidents in the future. The SEC will also intensify its efforts in implementing the Central Counter Party (CCP) for the CSE which will be the final solution to address settlement failure risk.

Bajaj to reduce 2 & 3 wheeler exports to SL

India’s Bajaj Auto Limited says its two and three wheeler exports to Sri Lanka will decline during this year, following the recent duty hike imposed by the Lankan government on automobile imports to the country.

According to the Livemint.com, the Pune-based company will pare its overall exports to Sri Lanka by about 70,000 units by the end of the ongoing fiscal year.

Bajaj exports 10,000 motorcycles and 12, 000 three-wheelers to Sri Lanka every month.

Sri Lanka recently increased the import duties on cars from 120-291% to 200-350%, on three-wheelers from 51-61% to 100%, and on two-wheelers from 61% to 100% in a bid to cut down import expenditure, which was putting pressure on the nation’s trade balance.

In the fiscal year ended 31 March, Bajaj has sold more than 1.5 million two wheelers and commercial vehicles.

Apart from Sri Lanka, some of the company’s other key export destinations are Africa, the Philippines and Latin America.

Shah Rukh Khan banned from entering Wankhede stadium

The Mumbai Cricket Association has banned India’s star actor Shah Rukh Khan, who is also the owner of the Kolkata Knight Riders from entering the Wankhede Stadium for five years, a media report said.

This is following a scuffle he had with the security guards of the Wankhede stadium, which has taken place after the game between KKR and Mumbai Indians on the 16th of May.

“The MCA managing committee is forced to ban Shah Rukh Khan from entering Wankhede Stadium for a period of five years,” Vilasrao Deshmukh, the MCA president, has told the media in Mumbai.

“If rules are violated, action will be taken. It does not depend who the individual is. It’s a message to everyone, whosoever he or she may be, that stern action will be taken if there is any misbehavior” Deshmukh has added.

Shah Rukh Khan has entered the ground without permission with a group of children, which MCA officials say cannot be done without prior permission.

However, the power of either enforcing the ban or not, lies with the Indian Cricket Board as state bodies can only recommend to the BCCI.

Company officials with the hoarding

A Sri Lankan advertising agency has launched the Asia’s first Mechanical Air Cleaning hoarding.

BBDO Lanka, a part of the BBDO World Wide says the new hoarding filters certain harmful content from the surrounding air, purifies it, and releases the purified air back to the environment.

“Our initial step was becoming the first advertising agency in South Asia to become ‘Carbon Neutral’, but we wanted to do much more. So we came up with an idea that has immense potential – an air purifying hoarding”, Santosh Menon, Managing Director, BBDO Lanka, was quoted saying in a statement issued by the firm.

According to the agency, the air cleaning hoarding comprises a mechanical filter and activated carbon which draws in air from the back of the billboard and filters the dust particles and certain gasses that are most harmful to breathe. The purified air is then released back into the environment.

Minister of Environment Anura Priyadarshana Yapa and his deputy Abdul Cader took part in the launching ceremony, which took place during this week.

Lanka Hospitals to build an Island wide laboratory network

Lanka Hospitals Corporation is planning to establish a network of laboratories across the country, partnering with India’s Fortis Healthcare Limited.

Accordingly, Lanka Hospitals says it will establish a fully owned subsidiary company for the purpose of expanding its laboratory business in the country, which will see an investment of Rs. 831 million.

Fortis Healthcare International, a subsidiary of the Fortis Healthcare Limited will partner with Lanka Hospitals towards establishing the network of laboratories.

Fortis Healthcare Limited is the second largest shareholder of Lanka Hospitals.

Lanka Hospitals says, once established this laboratory will be the most up-to-date in the country and will obtain the CAP accreditation, the gold standard in terms  of quality in laboratory services.

DNA Parliamentarian Tiran Alles also has told the media that President has promised to release Fonseka.

Fonseka, played an instrumental role in wiping out the LTTE, a US proscribed terror outfit.

The group was defeated in 2009, after it waged a 30 year war demanding a separate state.

]]> http://www.news360.lk/politics/cabinet-approves-the-release-of-fonseka-8843/feed 0 http://www.news360.lk/other/sports/sangakkara-is-champion-lehmann-9996?utm_source=rss&utm_medium=rss&utm_campaign=sangakkara-is-champion-lehmann-9996 http://www.news360.lk/other/sports/sangakkara-is-champion-lehmann-9996#comments Wed, 16 May 2012 09:17:04 +0000 author http://www.news360.lk/?p=18664

Darren Lehmann, the DC Coach

Darren Lehmann, the Deccan Chargers Coach has said, his team’s skipper Kumar Sangakkara is a Champion and has done a wonderful job behind the scenes.

“He is a champion and our captain and has done a wonderful job behind the scenes. Obviously he would have liked more runs but we have a special man, who looks after all the players. I’m sure he’ll turn his form around in the near future.” Lehmann has told reporters.

Sangakkara, has only managed to score 118 of 11 matches at an average of 18 during this years IPL.

He scored only one half century in the tournament.

Chargers have only won two matches out of 14 games, which automatically puts them out of the play offs.

The team lost around four to five close games, which saw going up to the last over.

Courtesy: Indiansportsnews.com

]]> http://www.news360.lk/other/sports/sangakkara-is-champion-lehmann-9996/feed 0 http://www.news360.lk/business-finance/india%e2%80%99s-itc-acquired-land-in-galle-face-via-its-local-subsidiary-8883?utm_source=rss&utm_medium=rss&utm_campaign=india%25e2%2580%2599s-itc-acquired-land-in-galle-face-via-its-local-subsidiary-8883 http://www.news360.lk/business-finance/india%e2%80%99s-itc-acquired-land-in-galle-face-via-its-local-subsidiary-8883#comments Wed, 16 May 2012 06:07:18 +0000 author http://www.news360.lk/?p=18657

ITC Limited buys a land in Colombo

India’s diversified business conglomerate ITC Limited has acquired a land in Sri Lanka to build a mixed-use hospitality project, a media report said.

The acquiring of the land at Galle Face in Colombo on a 99-year lease from the Board of Investment has been done through ITC’s fully owned subsidiary in Sri Lanka, WelcomeHotels Private Limited.

According to the report, India’s ITC plans to set up a mixed use project, including a luxury hotel.

However, a company Spokesperson has declined to share details such as the total area of the land parcel and investment to be made in the project.

According to the Spokesperson, the exact nature of the project will be decided after more detailed evaluation in due course of time.

Indian conglomerate has acquired the WelcomHotels Lanka Private Limited with effect from May 4, 2012 after buying  37, 65,000 equity shares .

Guardian Capital Partners

A Sri Lankan Equity investment firm says, the rule imposed by the SEC which locks in the private equity investors for a period of 9 months after an IPO, penalizes the genuine investors, who provide growth capital to companies, from exiting their positions once the firm goes public.

The equity firm, Guardian Capital Partners PLC says, typically in a private equity investment, at least a 3-5 year gestation period is needed by the companies from
the time of capital infusion to achieve the targeted growth.

It points out, in this situation, requiring private equity investors who have already taken a substantial risk during the initial growth period to be locked in for a further year reduces the attractiveness of the industry for those who participate in supplying this emerging source of risk capital to the local landscape.

The firm in its 2011 annual report says the law was primarily targeted at companies that launch IPOs within a few months of placing shares privately at a discount to the IPO price.

Firm’s Chairman Israel Paulraj observes that regulations are needed to protect investors and the integrity of the market, but warns over regulation is harmful.

“As it stands now, private equity investors would be locked in for a period of 9 months after an IPO; and where the placement has been done within the 12 months prior
to the IPO, the lock in would be extended up to 1 year” added Guardian Capital in its 2011 annual report.

“We would also like to note that in other emerging markets, such lock-in periods commence from the date of the allotment of private placement shares, in line with the
regulation that was in force previously in Sri Lanka, where PE investors were locked in for a year from the share allotment date” added Israel Paulraj, in his statement published in the annual report.

Guardian Capital Partners PLC which has completed the first full year of operations as a specialized private equity investment vehicle during the year 2011, says as of the end of the last financial year, the company was holding a total portfolio of Rs. 522.2 million.

Sanath J. yet to be paid for taking part in a friendly T20

Sri Lanka’s former star batsman Sanath Jayasuriya is among several international players who are yet to be paid for their participation in a friendly Twenty20, which has taken place during the weekend in Canada, a Media report said.

The match which has been organized by Kat Rose Inc. a Toronto based firm which claims that they have organized prior events in South Africa and Greater Toronto area.

Jayasuriya were among several other international stars who have taken part in a one off game played between International XI and Asia XI in Toronto’s Rogers center.

South Africa’s Mark Boucher is also among the set of players still waiting in Canada to get paid for taking part in the tournament.