SEC files action against Dr. Sena Yaddehige for insider dealing

The Securities and Exchange Commission of Sri Lanka (SEC) has filed action before the Fort Magistrate’s Court against Dr. Sena Yaddehige, for dealing in the shares of Kegalle Plantations PLC (KGAL) listed on the Colombo Stock Exchange.

Being the Chairman of the company, his transactions were just before a Rs. 45 dividend was declared by Kegalle Plantations PLC (KGAL) on 10 July 2015,  which is in breach of Section 32 of the Securities and Exchange Commission of Sri Lanka Act No. 36 of 1987 (as amended).  

The SEC also cited Subramanium Thinamany as a Defendant in this case for aiding and abetting Dr. Yaddehige to commit the offence of insider dealing. 

The Learned Magistrate Ranga Dissanayake having taken cognisance of the submissions of Sudarshana De Silva, Deputy Solicitor General of the Attorney General’s Department who appeared for the SEC, issued summons on Dr. Yaddehige and Thinamany to appear before the Magistrate on 28 March. 

On that day Thinamany appeared before the Learned Magistrate while the Attorney-at-Law who represented Dr. Yaddehige took notice of the next date Dr. Yaddehige was required to appear before the Learned Magistrate. 

On 21 March, an order was sought from the Court of Appeal by Dr. Yaddehige in the Writ application filed by him against the SEC, to stay the proceedings of the Magistrate’s Court. Attorney General’s Department Senior State Counsel Shaheeda Barrie, making submissions on behalf of the SEC, objected to Dr. Yaddehige’s request. Upon hearing the submissions of both parties, the Court of Appeal bench comprising Justice Kumudini Wickramasinghe and Justice Mahinda Samayawardane refused to grant the interim relief sought by Dr. Yaddehige.