Securities and Exchange Commission of Sri Lanka Act 2021 · As enacted · Part II · Markets and Market Institutions
28. Cancellation of licence of an exchange
Official English translation. The Sinhala text prevails. Open the official Sinhala text, official PDF on documents.gov.lk
Official translationFrom Department of Government Printing, unchanged
The Commission may, -
by notice in writing cancel the licence granted under section 26 with effect from the date specified in such notice; or
by notice in writing direct the exchange to cease to provide or operate such facilities, or to cease to provide such services, with effect from the date specified in the notice.
The Commission shall not cancel the licence or issue a directive under subsection (1) unless the Commission is satisfied that it is appropriate to do so for the protection of investors, in the public interest or for the proper regulation of the securities market, where any of the following circumstances occur :–
the exchange ceases to operate its securities market;
the exchange is being wound up or otherwise dissolved, whether within or outside Sri Lanka;
the exchange has contravened any term or condition of its licence or is charged with any offence under this Act;
the exchange has failed to comply with a term or condition of its license or directive issued under this Act or otherwise fails to comply with any provision or requirement under this Act;
any information provided for the purposes of section 26, was false or misleading in a material particular or from which there is a material omission;
a judgment debt against the exchange has not been satisfied in whole or in part;
a receiver, a receiver and manager, liquidator or equivalent person has been appointed, whether within or outside Sri Lanka in relation to or in respect of any property of the exchange;
the exchange has, whether within or outside Sri
Lanka, entered into a compromise or scheme of arrangement with its creditors which has not been satisfied; or
the exchange on its own accord applies to the
Commission to cancel its licence as an exchange, and the Commission thinks it fit to do so.
For the purposes of paragraph (a) of subsection (2)
where an exchange has ceased to operate its securities market for a period exceeding two weeks, it shall be deemed to have ceased to operate its securities market without obtaining the prior written approval of the Commission.
Notwithstanding the cancellation of a licence or the issuance of a directive under subsection (1), the Commission may permit the exchange to continue, on or after the date on which the cancellation or directive is to take effect, to carry on such activities affected by the cancellation or directive as the Commission may specify in the notice-
for the purpose of closing down the operations of the exchange or ceasing to provide the services specified in the notice;
for the purpose of protecting the interest of investors; or
in the interest of the public.
Where the Commission has granted permission to an exchange to continue under subsection (4), the exchange shall not, by reason of its carrying on the activities in accordance with such permission, be regarded as having contravened subsection (1).
Where the Commission acts under paragraph (a) of subsection (1), the Commission may, take any steps deemed necessary to ensure the protection of investors or to uphold the interests of the public with notice to the Minister.
The Commission shall not take any action under subsection (1) without giving the exchange an opportunity of being heard.
An exchange which is aggrieved by the decision of the Commission made under subsection (1) may, within fourteen days of receipt of such notice, appeal to the Minister.
Notwithstanding the making of an appeal under subsection (8), any action taken by the Commission under this section shall continue to have effect pending the decision of the Minister.
The Minister may, on an appeal made under subsection (8) after hearing the Commission and the exchange within a period of three months after the receipt of such appeal -
allow the appeal and direct the Commission to revoke the cancellation of the licence or the directive; or
disallow the appeal.
The Commission shall give effect to the decision of the Minister.
Subject to subsection (11), the Commission shall give public notice of any cancellation of licence or any directive issued under this section.
Part III
Issue of Securities
Part IV
Trade In Unlisted Securities
Part V
Market Misconduct
Part VI
Finance
Part VII