SEC files action against powerful businessman Dr. Sena Yaddehige

Powerful businessman Dr. Sena Yaddehige has been charged with insider dealing by the Securities and Exchange Commission of Sri Lanka (SEC) in a case filed on March 7 before the Fort Magistrate’s Court.

The SEC said in a media statement on Sunday that the charge pertained to dealing in the shares of Keg al le Plantations PLC (KGAL) listed on the Colombo Stock Exchange, being the Chairman of the company, just before a Rs 45 dividend was declared by KGAL on July 10, 2015. This 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. Dr. Yaddehige is also chairman of Richard Peiris Group.

The SEC said the Magistrate having heard the submissions of Sudarshana De Silva, Deputy Solicitor General of the Attor ney General’s Department who appeared for the SEC, issued summons on Dr. Yaddehige and Mr. Thinamany to appear before the Magistrate last Thursday ( March 28). On that day Mr. Thinamany appeared before the Magistrate while the Attorney- at- Law who represented Dr. Yaddehige took notice of the next date Dr. Yaddehige was required to appear before the Magistrate.

Meanwhile, March 21, 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. Ms. Shaheeda Barrie, Senior State Counsel of the Attorney General’s Department 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.