Securities and Exchange Commission of Sri Lanka Act 2021 · As enacted · Part VII · General
180. Power of the Commission to apply to court for certain orders
Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.
Official translationFrom Department of Government Printing, unchanged
On an application made to the court by the
Commission, the court may on being satisfied that there is a reasonable likelihood that any person has contravened or is likely to contravene a provision of this Act, regulations or any rule made thereunder or that a person has failed or is likely to fail to comply with any directive issued by the
Commission, the court may make an order–
restraining or requiring the cessation of the contravention;
restraining a person from dealing or trading in securities in respect of any class of securities mentioned in the order;
declaring a securities transaction to be void;
restraining the person from acquiring, disposing of or otherwise dealing with assets which the court is satisfied that such person is reasonably likely to acquire, dispose of or otherwise deal with;
directing a person to dispose of any securities that are specified in the order;
restraining the exercise of any voting or other rights attached to any securities that are specified in the order;
restraining a person from making available, offering for subscription or purchase or issuing an invitation to subscribe for or purchase or allotting any securities that are specified in the order;
appointing a receiver or liquidator over the property of a market intermediary or the property that is held by such person for or on behalf of another person whether on trust or otherwise;
vesting securities or such other property that is specified in the order in a trustee appointed by court;
requiring a person to do such act or comply with such directive where a person has refused or failed or is refusing or failing or is proposing to refuse or fail to do any act or comply with any directive that such person is required to do under this Act;
requiring that person or any other person who appears to have been knowingly involved in the contravention to take such steps as the court may direct to remedy it or to mitigate its effect including making restitution to any other person aggrieved by such contravention;
directing a person to do or refrain from doing a specified act for the purpose of securing compliance with any other order under this section;
directing a person to comply with a directive that is issued by the Commission;
on any ancillary matter deemed to be desirable in consequence of the making of an order under any of the preceding provision of this subsection.
If an application is made to court for an order under subsection (1), the Court may, make an interim order ex parte pending the final determination of the application.
The court may before making an order under subsection (1), direct that notice of the application be given to such persons as it thinks fit or direct that notice of the application be published in such manner as it thinks fit or both.
Where an application for an order under subsection (1) is made by the Commission or any person duly authorised by the Commission, the court shall not as a condition of the grant of the order require any undertaking as to damages to be given by or on behalf of the Commission.
A person appointed by order of the court under subsection (1) as a receiver of the property of a market intermediary–
may require the market intermediary to deliver to him any property of which he has been appointed receiver or to give to him all information concerning that property that may reasonably be required;
may acquire and take possession of any property of which he has been appointed receiver;
may deal with any property that he has acquired or of which he has taken possession in any manner in which the holder might lawfully have dealt with the property; and
has such other powers in respect of the property as the court specifies in the order.
In this section, “property”, in relation to a market intermediary includes monies, securities or other property and documents of title to securities or other property entrusted to or received on behalf of any other person by the market intermediary or another person in the course of or in connection with the business of the market intermediary.
The trustee appointed by an order of the court under this section—
may require any person to deliver to the trustee any security or such other property specified in the order or to give to the trustee all information concerning the securities that may reasonably be required;
may acquire and take possession of the securities or such other property;
may deal with the securities or such other property in any manner as it thinks fit; and
shall have such other powers in respect of the securities or such other property as may be specified by the court in the order.
The proceeds of the dealing in or disposal of securities under subsection (1) shall be paid to court and any person claiming to be beneficially entitled to the whole or any part of such proceeds may within thirty days of such payment to court apply to the court for payment out of the proceeds due to such person.
The court may rescind, vary or discharge an order made by it under this section or suspend the operation of such an order on the application of a party aggrieved by such order with prior notice to the Commission of such application of an aggrieved party.