220.
| (1) Subject to the provisions of subsection (8), an individual who is, or at any time during the six months immediately preceding the date of coming into operation of this Part has been, knowingly connected with a company shall not deal on a recognized stock exchange in securities of that company if he has information which-
| | (a) he holds by virtue of being connected with the company; | | |
| | (b) it would be reasonable to expect a person so connected and in the position by virtue of which he is so connected not to disclose except for the proper performance of the functions attaching to that position; and | | |
| | (c) he knows is unpublished price sensitive information in relation to those securities. | | |
|
|
| (2) Subject to the provisions of subsections (8) and (10), an individual who is or at any time in the six months immediately preceding the date of coming into operation of this Part has been knowingly connected with a company shall not deal on a recognized stock exchange in securities of any other company if he has information which
| | (a) he holds by virtue of being connected with the first-mentioned company ; | | |
| | (b) it would be reasonable to expect a person so connected and in the position by virtue of which he is so connected to disclose except for the proper performance of the functions attaching to that position ; | | |
| | (c) he knows is unpublished price sensitive information in relation to those securities of that other company ; and | | |
| | (d) relates to any transaction whether actual or contemplated, involving both the first-mentioned company and that other company or involving one of them and securities of the other or to the fact that any such transaction is no longer contemplated. | | |
|
|
| (3) Subject to the provisions of subsections (8) and (10), where
| | (a) any individual has information which he knowingly obtained, whether directly or indirectly, from another individual who is connected with a particular company, or was at any time in the six months immediately preceding the date of obtaining of the information so connected and who the former individual knows or has reasonable cause to believe, held the information by virtue of being so connected ; and | | |
| | (b) the former individual knows or has reasonable cause to believe that, because of the latter's connection and position, it would be reasonable to expect him not to disclose the information except for the proper performance of the functions attaching to that position, | | |
|
|
| (4) Subject to the provisions of subsections (8) and (10), where an individual is contemplating, or has contemplated, making, whether with or without another person, a take over offer for a company in a particular capacity, that individual shall not deal on a recognized stock exchange in securities of that company in another capacity if he knows that the information that the offer is contemplated or is no longer contemplated is unpublished price sensitive information in relation to those securities. |
|
| (5) Subject to the provisions of subsections (8) and (10), where an individual has knowingly obtained, whether directly or indirectly, from an individual to whom the provisions of subsection (4) apply, information that the offer referred to in subsection (4) is being contemplated or is no longer contemplated, the first-mentioned individual shall not himself deal on a recognized stock exchange in securities of that company if he knows that the information is unpublished price sensitive information in relation to those securities. |
|
| (6) Subject to the provisions of subsections (8) and (10), an individual who is for the time being prohibited by any provision of this section from dealing on a recognized stock exchange in any securities shall not counsel or procure any other person to deal in those securities, knowing or having reasonable cause to believe that that person would deal in them on a recognized stock exchange. |
|
| (7) Subject to the provisions of subsections (8) and (10), an individual who is for the time being prohibited as aforesaid from dealing on a recognized stock exchange in any securities by reason of his having any information, shall not communicate that information to any other person if he knows or has reasonable cause to believe that that or some other person will make use of the information for the purpose of dealing, or of counseling or procuring any other person to deal, on a recognized stock exchange in those securities. |
|
| (8) The provisions of this section shall not prohibit an individual by reason of his having any information from
| | (a) doing any particular thing otherwise than with the view to the making of a profit or the avoidance of a loss, whether for himself or another person, by the use of that information ; | | |
| | (b) entering into a transaction in the course of the exercise in good faith of his functions as liquidator, receiver or trustee in bankruptcy; or | | |
| | (c) doing any particular thing if the information
| | | (i) was obtained by him in the course of the business of a jobber in which he was engaged or employed; and |
| (ii) was of a description which it would be reasonable to expect him to obtain in the ordinary course of that business, |
|
|
|
| (9) In subsection (3), "jobber" means an individual, partnership or company dealing in securities on a recognized stock exchange. |
|
| (10) An individual shall not, by reason only of having information relating to any particular transaction, be prohibited
| | (a) by the provisions of subsection (2), paragraph (ii) of subsection (3), subsection (4) or subsection (5) from dealing on a recognized stock exchange in any securities; or | | |
| | (b) by the provisions of subsection (6) or subsection (7) from doing any other thing in relation to securities which he is prohibited from dealing in by any of the provisions referred to in paragraph (a), | | |
|
|
| (11) Where a trustee or legal representative, or, where a trustee or legal representative is a body corporate, an individual acting on behalf of that trustee or legal representative, who, apart from the provisions of paragraph (a) of subsection (8) would be prohibited by the provisions of this section from dealing, or counseling or procuring any other person to deal, in any securities, deals in those securities, or counsels or -procures any other person to deal in them, he shall be presumed to have acted as referred to in that paragraph if he acted on the advice of a person who
| | (a) appeared to him to be an appropriate person from whom to seek such advice; and | | |
| | (b) did not appear to him to be prohibited by this section from dealing in those securities. | | |
|
|
|
Sri Lanka Consolidated Acts