Oh Boy!! TFC Cat is out of the Hat!!!

Here comes a new announcement market never knew!! 16th April purchase of TFC shares by a director only disclosed to the market 20 days later!!! Wake up CSE!!! Rs 20 profit in 20 days!!! based on inside information?

SAKVITHI BETTER THAN cse THE ?

This is a clear case of insider trading. Dinal was well aware of the NSB transaction @ Rs:49/- when he bought the same at Rs: 30/=.

Dear all;
Shall we ask from the HE President to not to allow anybody to purchase shares outside the market ant direct CSE to let everybody to purchase shares at the open market only.
It is better not to allow purchasing shares outside the market in order to avoid this nature of rackets.

TFC's Director's older transaction is now being announced when the fat has hit the fire

Link: http://lankabusinesstoday.com/news/market/1802-hidden-skeletons

May 08, 2012 (LBT) - Sri Lanka's oldest financial company, The Finance Company PLC (TFC), whose some directors are involved in a controversial share transaction with savings giant National Savings Bank (NSB) made a quite surprising disclosure of a share purchase transaction of TFC shares by its Director Dinal Wijemanne.

Accordingly the disclosure which is as old as 3-weeks said Dinal Wijemanne the director recently shed nearly little over 2.9 million shares at Rs.50 on 27th April had purchased 4,983 shares at Rs 30 per share on 16th April, 2012 just one and half weeks before the selling transaction.

But investors had raised concerns since Wijemanne's selling transaction was disclosed to Colombo Bourse on 27th April (on the same day which transaction took place) whilst the buying transaction was disclosed way later on today the 8th May 2012.

"This in turn shows by being a Director, Wijemanne having price sensitive information had made a profit of over Rs.90,000 within a period of one and half weeks.From a point of an investor it is totally unfair since none of the investors or small timers at Colombo Bourse can not get such a capital gain over 66% under prevailing market conditions not even from the same TFC shares" a top investor said adding only a few handful of Directors and a network of their friends were able to get the capital gain by shedding their TFC shares to NSB.

On the contrary Sri Lanka’s capital market regulator Securities and Exchange Commission (SEC) had convinced the industry and investors several times that it was trying to position Colombo Stock Exchange as a disclosure-based trading market, making listed company transactions more transparent. However, most blue chip companies and a few high net worth individuals and Directors of listed companies continue to disclose their major dealings to the CSE very much later.

According to the market watchdog, if a company or its directors disclose major dealings late to the CSE, it means that they have violated listing rules and normal sanctions will be applicable on such directors and entities.

"It is surprising since an older transaction being disclosed while SEC had recently said they are probing the relevant Directors for controversial transaction with NSB" a market analyst said.

LBT on 27th April evening revealed that Dinal Wijemanna and Raynor Silva, Anura Fernando, N. Perera and Y. Perera sold shares totaling a 13.02% stake or over 7.8 million shares of TFC to the NSB at an average premium price of Rs 49.74 per share when the market price was Rs 30-31 per share.

Later on Monday we also revealed that the President and Treasury had intervened and has ordered an investigation while the Securities and Exchange Commission is probing issues related to the TFC-NSB transaction.

It was also revealed from stock market sources that Sampath Bank had settled the total value of transaction amounting to over Rs.390 million prior to NSB settling its cost which turn NSB defaulted and created a 'Fiasco' among other stock brokers since several brokering houses did not receive their settlement dues till today from Sampath Bank. Followed by this move even the stock market indices collapsed on today with investors losing confidence.

Several creditors and depositors of NSB had even questioned the deal and has expressed concerns about its chairman Pradeep Kariyawasam and some directors of TFC and people have expressed a loss of confidence in the island's most stable savings bank, according to sources.

Should be hanged alive.

bullrun wrote:Dear all;
Shall we ask from the HE President to not to allow anybody to purchase shares outside the market ant direct CSE to let everybody to purchase shares at the open market only.
It is better not to allow purchasing shares outside the market in order to avoid this nature of rackets.

Yes.. all the crossings should be banned.. those crossings are usually scams... why those so called high networth buggers can not perchase shares at open market..

econ wrote:

bullrun wrote:Dear all;
Shall we ask from the HE President to not to allow anybody to purchase shares outside the market ant direct CSE to let everybody to purchase shares at the open market only.
It is better not to allow purchasing shares outside the market in order to avoid this nature of rackets.

Yes.. all the crossings should be banned.. those crossings are usually scams... why those so called high networth buggers can not perchase shares at open market..

Yes. We have no other choice now. Better to bann crossing. That would also help indices to be more realistic.

Most of the recent crossing seems to be swapping between marginal accounts or within a group dealing. (May be to avoid T+30 Rule of SEC)
Which might fall into investigation in future.
Basically lack of transparency in all over the places, leading to these kind of scams.

illuminati wrote:Should be hanged alive.

Have you ever heard of anyone hanged dead...

Who is the hidden and main person in this case? Wijemanna??

Collect all points pro and against crossings. Based on that shall we make a request from regulators?

What Regulators can do... They are also sleeping ne... Saw in one web site UNP is going to apply a court case for this transaction.. but you know who is the chairman of NSB ????? (Chief Justice husband.so you can imagine the verdict for the case)

Isn't there anybody to stop these corrupt acts. Who is responsible at CSE.

Sri Lanka especially CSE is fast becoming the joke (or Scam) of Asia!

http://forum.srilankaequity.com/t17936-tfc-breakout#118159