It is an unfortunate turn of affairs that an individual shareholder via his company is maintaining a hold on a large cache of Ceylinco Insurance shares over a long period of time, which could be for his personal gain.
In order to secure his interests, it is alleged that he artificially manipulates and inflates the price of said shares at times, ensuring mammoth personal gain. By so doing, he continues to deprive market forces of determining the correct price of the share, thus misleading small and retail investors to a great extent. Thus, even innocent members of the public, who remain unaware of the actions of this individual, have been deceived on many occasions.
Recently, this individual attempted to purchase shares of Ceylinco Insurance by offering Rs. 50 more than the average trading price of the day: when the share was being traded around Rs. 745, his purchase price was Rs. 799. By so doing, he pushed the price up unnecessarily, sending the wrong signals to small timers and retail investors, who have fallen into similarly deep trouble on many occasions.
It is truly an unfortunate turn of events when a share, such as that of Ceylinco Insurance, which has much potential to be traded freely and worthily, is held by one individual, purely for personal gain.
While our authorities valiantly trying to regulate the market from malpractices it is indeed a sad fact such alleged activities are allowed to take place in the market. The time is indeed right that the regulators intervene to save public institutions especially in the financial services sector from such malpractices which will no doubt increase the confidence in the financial sector, whilst benefiting the public at large.