Sri Lanka Consolidated Acts

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Securities Council Act (No. 36 of 1987) - Sect 33

prohibition on anuse of information obtained in official capacity

33.
(1) The provision of this section shall apply to any information which-
(a) is held by a public servant or former public servant by virtue of his position or former position as a public servant or is knowingly obtained by an individual (directly or indirectly) from a public servant or former public servant who he knows or has reasonable cause to believe, held the information by virtue of any such position;
(b) it would be reasonable to expect an individual in the position of the public servant or former position of the former public servant not to disclose except for the proper performance of the functions attaching to that position; and
(c) the individual holding it knows, is unpublished price sensitive information in relation to listed securities of a particular company (hereafter in this section referred to as "relevant securities").
(2) The provisions of this section shall apply to a public servant or former public servant holding information to which this section applies and to any individual who knowingly obtained any such information (directly or indirectly) from a public servant or former public servant who, that individual knows or has reasonable cause to believe, held the information by virtue of his position or former position as a public servant.
(3) An individual to whom the provisions of this section apply-
(a) shall not trade in any relevant securities;
(b) shall not counsel or procure any other person to trade in any such relevant securities, knowing or having reasonable cause to believe that other person would trade in them; and
(c) shall not communicate to any other person the information held or, as the case may be, obtained by him as referred to in subsection (2) if he knows or has reasonable cause to believe that that or some other person will make use of that information for the purpose of counseling or procuring any other person to trade in such relevant securities.
(4) An individual shall not, by reason only of having information relating to a particular transaction, be prohibited by any provision of this section from doing anything, if he does that thing in order to facilitate the completion or carrying out of the transaction.

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