SEC slaps Rs.5mn fine on Access Engineering for delayed disclosure

Stock market watchdog Securities and Exchange Commission (SEC) has slapped a Rs.5 million administrative penalty on Access Engineering PLC, for delayed disclosure relating to a rating downgrade.
“The SEC noted that Access Engineering PLC delayed the disclosure relating to a rating downgrade immediately to the market, as required by Rule 7.13(b)(ii) Listing Rules of the CSE
Having regard to the nature and manner of the non-compliance and also having given due regard to the proportionality to the severity or gravity of the non-compliance, the SEC imposed an administrative penalty of five million rupees (Rs.5,000,000) on Access Engineering PLC (AEL), in terms of Section 178 (1)(ii) of Securities and Exchange Commission of Sri Lanka Act No.19 of 2021,” the SEC said.
ICRA Lanka Limited downgraded Access Engineering in September, 2022 to (SL)A, with a Negative outlook, from (SL)A+, with a Negative outlook.
“The rating revision factors in the challenging macroeconomic outlook and its adverse impact on the construction sector, in particular. Given the current extremely challenging operating environment, the construction sector is adversely affected by delayed payments from the Government of Sri Lanka, material shortages and high input prices,” the rating report said.