Vignarajah fires fresh salvo to SEC

Saturday, 20 October 2012 00:00 - - {{hitsCtrl.values.hits}}

Investor K.C. Viganarajah has sent a fresh letter via email to the Securities and Exchange Commission (SEC) alleging that the capital market regulator’s statement in response to his original communication had half truths and untruths. In addition he also described SEC’s media release as “purported”.

Here is the full text of Vignarajah’s email in the “public interest, and interests of investing public” to the SEC, copy of which was sent to the media late Thursday night.

My very polite constructive letter dated 12th instant was mailed to you first; thereafter the directorate of the SEC, and to the media whose e-mail addresses were available with a part-time student who wants to enrich his studies while helping me overcome serious disabilities of sight and inability to use the computer.

My longstanding work in public interest is based on the philosophy that ‘service to the people is the best possible service to God’. I also adhere to the noble family traditions, glimpses of which are quoted at the bottom of my letter.

Thus, my response to the eminent business editors and journalists who have espoused the highest media tradition of reporting the truth ASAP was that I have to extend the courtesy of waiting for your response to me. Unfortunately, you chose to respond in the above manner.

It elicited a fitting response from Dr. Harsha de Silva, the eminent economist and bright young Parliamentarian who is extremely alert and conscious of the responsibility for the wellbeing of the country and its people. Many other eminent people have also congratulated me for the very constructive suggestions made to retain the interim safeguards until the completion of the process set in motion by your illustrious, honest and upright predecessors Indrani Sugathadasa and Dr. Thilak Karunaratne. Among many other good initiatives the following are yet to see implementation due to the unsavoury pressures that have been exerted:

The implementation of the minimum public float of 30%. (This will eliminate the standing joke of Sri Lanka version of the “free market” where the liquidity is very low and ridiculously low. float of 12 to 15%.)

Ensuring good corporate governance. (Please see my letters to the SEC in June and July last year)

Prevention of shareholder fatigue.

Related party definition.

Amendments to SEC Act

It is so elementary, says my student helper! “You cannot remove the safeguards until the required amendments are in place to prevent exploitation of the innocent independent shareholders, by the crooked insider dealers, market manipulators, front runners, pump and dump artists, etc.”

I am informed that the media release had contradictions and innuendos, which were malicious and misleading; “Mr. Vignarajah is quoted eight times but the simple courtesy of sending him a copy seems to be alien to their culture,” says my student helper.

I will correct your erroneous perceptions, after I receive a copy.

Stating that 27 of 28 equity brokers turned up is a mere statistic; the various groups and their different views, for and against, are not given. Media reports on 10 October pointed to mixed reactions on the credit and rules relaxation. Eminent lawyer and a former DG of the SEC Aritha Wickramanayake, among others, has also expressed strong views against removal of the interim safeguards.