Securities and Exchange Commission of Sri Lanka Act 2021 · As enacted · Part III · Issue of Securities
83. Commission to issue stop orders
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
Where the Commission is of the opinion that–
a prospectus or similar document submitted to a licensed stock exchange under its listing rules or in respect of public offers falling within section 80
does not comply with or is not prepared in accordance with the provisions of this Act or the rules of the exchange as the case may be;
a prospectus or similar document contains a statement or information that is false or misleading or from which there is a material omission; or
an issuer has contravened any provision of this Act, regulations, rules or directives made thereunder or has not complied with the requirements imposed under this Act, the Commission may issue an order to the issuer not to allot, issue, offer or make an invitation to subscribe for or purchase or sell further securities relating to public offers.
The Commission shall not make an order under subsection (1) unless the Commission has given a reasonable opportunity to be heard to any affected person as to whether such an order should be made.
If the Commission considers that any delay in making an order under subsection (1) by giving an opportunity to be heard would be prejudicial to the interest of investors, the Commission may make an interim order without giving an opportunity to be heard.
An interim order under subsection (3) shall, unless previously revoked have effect until the end of twenty one days after the day on which it is made or the conclusion of the hearing in subsection (2), whichever date is later.
An order made under subsection (1) or an interim order made under subsection (3) may be revoked by the
Commission by way of a directive if the Commission becomes satisfied that the circumstances that resulted in the making of the order no longer exist.
Where applications to subscribe for or purchase securities to which the prospectus or similar document relates has been made prior to an order under subsection (1) being made–
but before the securities have been issued to the applicants, the applications shall be deemed to have been withdrawn and cancelled and the issuer or such other person who receives the monies, shall, forthwith repay without interest all monies received from the applicants and if the money is not repaid within fourteen days of the order, the issuer shall be liable to repay the monies with interest as may be specified by the Commission from the expiration of that period; or
where the securities have been allotted to the applicants, the allotment of securities shall be deemed to be void and the issuer or any other person shall forthwith repay without interest all monies received from the applicants and if such money is not repaid within fourteen days of the date of service of the order the issuer shall be liable to repay such monies with interest at the rate as may be specified by the Commission from the expiration of that period.
Provisions of this section shall not apply in respect of any issuer if any of the securities to which the prospectus or similar document relates have been issued or listed on an exchange and trading in them has commenced.
Part IV
Trade In Unlisted Securities
Part V
Market Misconduct
Part VI
Finance
Part VII