Notices have been issued this month by the Court of Appeal to the capital market regulator Securities and Exchange Commission (SEC), Colombo Stock Exchange (CSE), Central Depository System (Pvt.) Ltd (CDS) and Bartleet Religare Securities (Pvt.) Ltd in relation to a writ application seeking to compel the SEC to cancel or revoke the stockbroker licence granted to Bartleet Religare Securities.
This is under the Section 21 of the SEC Act owing to its findings at the statutory inquiry that numerous contraventions of the provisions of the SEC Act and stockbroker rules of the CSE are of a very serious nature. Notices were issued pursuant to action filed by M.M. Melvani, who owned an investment portfolio maintained by Bartleet Religare Securities Ltd. Melvani in her petition alleged that the investment advisor and officials of Bartleet Religare Securities Ltd were responsible for the loss of most of her investment portfolio as well as the swindling of a large sum of money from her CDS account by unlawfully selling shares from same under various pretexts without her knowledge and consent and thus, being liable for gross negligence, incompetence, breach of share trading agreement and breach of duty of care and fiduciary duty. The present, action was instituted based on the conclusion on the findings at the statutory inquiry conducted under the terms of sections 13 (i) and 46 A of the SEC Act, into the conduct of stockbroker Bartleet Religare Securities Ltd, which is of a very serious nature. The petitioner also sought a writ of prohibition restraining and prohibiting the SEC from renewing the licences and registration granted to Bartleet Religare Securities Ltd as a stockbroker or granting such new licences or registration. The case will be taken up on November 30, 2016. Counsel Mangala Niyarepola with Dasuni Wijesiriwardena and Sonali Ranagala, instructed by D.L & F De Saram Attorneys-at-Law, appeared on behalf of the petitioner.