SEC files action against Dr. Sena Yaddehige for alleged insider dealing

• Case filed at Fort Magistrate’s Court regarding alleged insider dealing on Kegalle Plantations shares
• Yaddehige’s writ application to halt Magistrate’s Court proceedings not successful

The Securities and Exchange Commission of Sri Lanka (SEC) on March 07, 2019 filed action before the Fort Magistrate’s Court against Dr. Sena Yaddehige, for dealing in the shares of Kegalle Plantations PLC (KGAL) listed on the Colombo Stock Exchange, being the Chairman of the company, just before a Rs.45 dividend was declared by Kegalle Plantations PLC (KGAL) on 10th July 2015,  which 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 Richard Pieris Group employee Subramanium Thinamany as a defendant in this case for aiding and abetting Dr. Yaddehige to commit the offence of insider dealing.

Magistrate Ranga Dissanayake having taken cognizance of the submissions of Sudarshana De Silva, Deputy Solicitor General of the Attorney General’s Department, who appeared for the SEC, issued summons on Dr. Yaddehige and Thinamany to appear before the Magistrate on March 28, 2019. 

On that day, 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, on March 21, 2019, an order was sought from the Court of Appeal by Dr. Yaddehige in a writ application filed by him against the SEC, to stay the proceedings of the Magistrate’s Court. 

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.