see [ The proposed amendment to the SEC]
A person is an “insider” if that person–
a) Possesses information that is not generally available which on becoming generally available a reasonable person would expect it to have a material effect on the price or the value of securities, derivatives or futures contracts; and
(b) Knows or ought reasonably to know that the information is not generally available.
Information” includes-
(a) Matters of supposition and other matters that are insufficiently definite to warrant being made known to the public;
(b) Matters relating to intentions, or likely intentions, of a person;
(c) Matters relating to negotiations or proposals with respect to –
(d) commercial dealings;
(e) dealing in securities; or
(fi) trading in derivatives contract;
(g) Information relating to the financial performance of a company;
(h) information that a person proposes to enter into, or has previously entered into one or more transactions or agreements in relation to securities, derivatives contracts or has prepared or proposes to issue a statement relating to such securities or, derivatives contracts; and
(i) Matters relating to the future.
7 Materiality is defined as information that on becoming generally available would or would tend to have a material effect on the price or value of securities or derivatives contracts refers to information which would or would tend to, on becoming generally available, influence reasonable persons who invest in securities or trade in derivatives or futures contracts in deciding whether or not to – (a) acquire or dispose of such securities or derivatives contracts; or (b) enter into an agreement with a view to acquire or dispose of such securities or derivatives contracts.
8 (1) Information is generally available if – (a) the information has been made known in a manner that would, or would tend to, bring it to the attention of reasonable persons who invest in securities or trade in derivatives contracts of a kind whose price or value might be affected by the information; and (b) Since it was made known, a reasonable period for it to be disseminated among such persons has elapsed. (2) The information referred to in subsection (1) includes information that consists of deductions or conclusions made or drawn from such information.
9 The new Part IV will apply to- (a) acts and omissions occurring within Sri Lanka, in relation to - (i) securities of any listed public company which is formed or carrying on business or is listed within or outside Sri Lanka; and (ii) derivatives and futures contract whether traded within or outside Sri Lanka; and (b) acts occurring outside Sri Lanka in relation to – (i) securities of any listed public company which is formed or is carrying on business or is listed within Sri Lanka; and (ii) derivatives contracts traded within Sri Lanka.