Sri Lanka’s Buckle Tight Regulator may go home by end of 2011?

After many tight regulations he took to curb investors and brokers from so called manipulations since his appointment in 2010; Sri Lanka’s buckle tight regulator Malik Cader had been asked to leave from his position of Director General (DG) at the Securities and Exchange Commission of Sri Lanka; CSE Leaks learns.

'Accordingly by a special Cabinet paper decision he had been asked to leave his office', reports reveal. “He had asked for more time till 31 December 2011  but he will be removed early as 31 October 2011” a source close to SEC told CSE Leaks.

SEC Director Malik Cader at Aquaventure Dubai Water Park at  Atlantis Hotel at Dubai,
United Arab Emirates. Search for Malik Cader in facebook and
 investigate his investing friends in CSE
go to link: http://www.facebook.com/malik.cader?sk=friends 

Since the time when Cader took the DG seat he had been implementing so many rules in terms of regulation to CSE in what called to be the ‘Moves that are taken to develop a disciplined capital market in the country’. However it is now learnt from various stock market sources that although Malik Cader was acting as a highly disciplined regulator he had a circle of friends who had pushed up illiquid shares that has no value in the CSE; and those friends never got caught to Cader’s Rules.

“There’s an to head of a stock brokering firm who is called to be the Cashier of Malik” many other sources from Colombo Stock Exchange told CSE Leaks adding that industry officials are aware that particular top official charged money from ‘SEC caught investors and brokers’ telling them that he can sort the matter with Director General of SEC at several occassions.

At a time when Sri Lanka’s tourism is booming, in another development Sri Lankan stock market investors had been surprised by a new Hotel Development project coming up in tourism booming Pasikudah beach valued at an investment of nearly Rs.220 million or US $ 2 million that is yet to be constructed which is called to be a project jointly owned by a regulatory official at SEC and a head of a stock broking company with couple of Investors. “It is said this Leisure project coming up at Pasikudah is constructed by a capital market watchdog official’s father in law who runs a construction firm and who is a top architect in the island nation"Sources added. Now it is also learn from sources the Hotel is nearing completion.

Since Sri Lanka’s capital market watchdog got a new official, Malik Cader as the Director General of the Securities and Exchange Commission with effect from 2 November 2010, Sri Lanka’s Browns fame led subsidiaries and associates including Hydro Power Free Lanka (HPFL), Free Lanka Capital Holdings (FLCH), Browns Investments (BIL) had already been listed whilst Agstar Fertilizers, Sierra Constructions is yet to be listed in Colombo Bourse after an IPO or through ‘Introduction’ after a Private Placement. It is also learnt that several Browns fame investors made ‘Big Deals’ at a time when Malik Cader head the seat as DG in the capital market watchdog’s house in the island.

On the contrary ever since Securities and Exchange Commission Director General Malik Cader was appointed to DG seat Colombo Stock Market performance had been gradually dipping whilst retail investors had left market time to time since early January 2011.

Surprisingly when a published article in Sri Lanka’s Pink Paper;  Daily FT on 21 October 2011 questioned whether SEC DG ‘Malik Cader Out or In?’ the market indices shot up whilst stock prices soar with investors flocking up to CSE about the Good News that outlined the future of Malik Cader in Sri Lanka at the capital market watchdog’s house.

Joined as a Press Officer to SEC in mid 1980’s Malik Cader was the Director-Legal and Enforcement prior to being DG at the capital market watchdog’s house in Sri Lanka.

Questionable New Plan of CSE?

CSE Leaks exclusively learn from market sources that Colombo Stock Exchange’s (CSE) officials had consulted a global management consultant firm; McKinsey & Company, Inc. branch office in India to provide a better plan to the next development phase of Sri Lanka’s only capital market.

“CSE consulted McKinsey & Company, Inc. two months ago and so far nothing has happened and it was recommended by the CSE Chairman and its Chief Executive Officer” a top source said to CSE Leaks.

It is also learnt that so far McKinsey & Company had not been able to get an official appointment from Sri Lanka’s top treasury secretariat of the island nation to discuss the development plan for the capital market of Sri Lanka.

Meanwhile it is learnt from market sources that McKinsey & Company had been interviewing top Board of Directors of CSE, Stock Brokers, Unit Trusts and largest investors for nearly month since they started to develop a plan for the growth of CSE.

McKinsey & Company in India is established in Gurgaon in Haryana (close to New Delhi) and Mumbai whilst Gurgaon office is housed at Plot No. 4 Echelon Institutional Area, Sector 32 Gurgaon 122001, Haryana, India having phone numbers +91 (124) 661 1000 and fax number +91 (124) 661 1400.

The McKinsey Knowledge Center is located in Gurgaon and is the largest hub of knowledge professionals within McKinsey according to reports. McKinsey is said to be an advisor and counselor to many of the most influential businesses and institutions in the world and serve more than 80 percent of Fortune magazine’s list of the Most Admired Companies.

As a global management consulting firm that focuses on solving issues of concern to senior management; McKinsey serves as an adviser to many governments and institutions too. It is recognized as one of the most prestigious firms in the consulting industry and has been a top employer for new MBA graduates since 1996 globally.