Citation:Nanayakakra, D.D. & Sujeewa, G.M.M. 2016. Intended Manipulation of Share Prices. Case Studies in Accounting “Bridging the Gap”, 03: pp. 14-16. Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka.
Date:2016
Abstract:
XYZ Limited is a Limited Liability Company incorporated & domiciled in Sri
Lanka under the companies Act no.07 of 2007. XYZ Limited is a fully owned
subsidiary of PQR Limited. ABC Ltd is a subsidiary of the XYZ Ltd which located
in same business place & governed by same directors. The principal activity of
the company is providing intermediary and advisory services on financial,
investments and other corporate activities and Asset Management services.
The company had an investment of Rs. 62 Million in KLM PLC shares (one of
their related company incorporated in Maldives). This investment was valued at
active market price of 10 Maldives Rufiyaa each. In further inquiries it was noted
that the active market has been manipulated by parties within the group with
the intention of recording a gain from those shares and to make the company
visible as a profit making body to the interested parties of its financials.
