Claridge Stockbrokers’ licence extended pending inquiry

The market players then were active during good times and bad - high interest rates, war and whatever that came their way, they still played the market. Now we're exposed to more serious stuff like global trends, what other markets do and so on. When foreign sellers sell frontier markets they sell across all markets, so trends and patterns that we now have are so much different from the early years.

3) Do you prefer the CSE then to now?

Well it has evolved and we all moved on. Things have improved technology-wise and CSE is one of the most advance exchanges in the region.

4) What memorable experience can you recall?

For sure it was in 1989 during the JVP uprising

Work hard, learn the entire process. There are no short cuts to the top and don't look for easy money.

7) What changes would you like to see in the next 5 years?

To see the capital markets grow in line with peers internationally. As an industry we haven’t moved forward over the years and that's the sad thing. We feel the increase in market capitalization, etc are just not enough to make this a market for large international investors to take proper notice. Much more has to be done. From 1987 the usual stocks like JKH, Commercial and HNB have been the stocks we all have been recommending to clients due to their size with the exception of Dialog which was a new listing. In that sense we still are at square one.

Sri Lanka's stock market regulator which is probing Claridge Stockbrokers, part of Mackwoods Group, over non-compliance issues has decided to further extend the renewal date of Claridge's licence.

Claridge transferred sales funds to Browns Group (Browns) despite the Securities and Exchange Commission (SEC) issuing a directive suspending the sale of a 60.8 per cent stake in Agalawatte Plantations Plc owned by Mackwoods Plantations Pvt Ltd to Browns.

The investigation by the SEC on this issue is still ongoing. Sources told the Business Times that Claridge's licence was up for renewal in October. "Then since this investigation wasn't completed SEC decided to further extend it by another month. The decision was taken at the recent SEC meeting,” he said.

A family feud over ownership of the Mackwoods Group between its chairman Chris Nonis and related parties and his sister Nirmalie Samaratunga and connected parties has resulted in too many issues at the group.

The SEC was very critical of Claridge and said in a public statement that the sale of the controlling stake in Agalawatte Plantations (to Browns) was in violation "of the written instructions issued to Claridge” and contrary to a directive issued by the SEC is a serious breach of discipline and a matter on which the SEC takes very serious cognizance. "Your conduct is aggravated by the fact that Claridge Stockbrokers Pvt Ltd is a company in which Dr. Chrishantha Nonis has an interest," the statement said.

The investigation by the SEC on this issue is still ongoing. Sources told the Business Times that Claridge's licence was up for renewal in October.