Trading of Swarnamahal Financial Services shares suspended over non-compliance

Wednesday, 18 July 2018 00:00 -     - {{hitsCtrl.values.hits}}


  • Company says in negotiation with potential investor in consultation with the Central Bank to infuse fresh capital

The trading of securities by Swarnamahal Financial Services Plc has been suspended after it failed to comply with the listing rules of the Colombo Stock Exchange (CSE).

In a filing to the CSE, the Company said trading of its securities has been suspended with effect from 1 July 2018 due to noncompliance with sections of the listing rules of the CSE, after the expiry of six months from the date of transferring the securities of the company to the Watch List with effect from 1 January 2018 by the CSE.

In this regard the company made an appeal on 25 June to obtain a deferment in respect of the suspension of trading of securities from the Securities and Exchange Commission to be effected from 1 July till 31 December 2018 but the deferment was not granted by the SEC due to noncompliance with section 7.10.7 (i) of the listing rules of the CSE.  The Company said it is now negotiating and finalising a proposal with a potential investor in consultation with the Central Bank to infuse fresh capital, change the ownership and appoint new directors into SFS in line with regulatory requirements, hence it is expected that SFS would be able to comply with the above stated sections of the listing rules in the next few months, no sooner than the proposals of the potential investor are materialised.