24. Amendment of section 31D of the principal enactment

Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

Section 31D of the principal enactment is hereby amended as follows :—

(1)

by the repeal of subsections (1), (2), (3) and (4) of that section, and the substitution therefor of the following subsections :—

‘(1) The Commission shall cancel or suspend the licence granted to a managing company in respect of a particular unit trust, where the

Commission is satisfied that —

(a)

the managing company of such unit trust has acted in breach of any provision of this Act or any rules or regulations made thereunder ;

(b)

the managing company of such unit trust has ceased to be of good financial standing ;

(c)

the managing company of such unit trust is guilty of malpractice or irregularity in the management of its affairs ;

(d)

the managing company of such unit trust has been dismissed by the trustee of a unit trust ; or

(e)

the approval granted to the trustee of such unit trust has been withdrawn by the Commission under section 31B and a new trustee has not been approved by the Commission.

Securities and Exchange Commission of Sri Lanka