Sri Lanka’s PC House PLC (PCH) said on Thursday that listed companies (like PCH) have no control whatsoever over price movements that occur in the stock market.
Responding to the imposition of the price band by the Securities and Exchange Commission (SEC) on the company’s stock on Wednesday, it said it met senior officers of the SEC to inquire as to the reasons for such a move.
“We were informed that such bands come into effect automatically on any counter which exceeds a pre-determined level of price movement and volume traded based on each listed company’s free float over a period of 5 days on a daily roll-over basis,” the company statement said. The SEC has repeatedly announced that a price band on a stock if there is volatility in that particular stock.
PCH said it was very concerned at any possible negative consequence that the SEC’s price band had against ‘its good reputation, and reiterated that what happens in the stock exchange is totally independent of the operations of PCH’.The share market is purely a secondary market for the purpose of trading listed shares which is totally controlled by buyers and sellers who operate through approved stock-brokers, and the entire market is regulated by the SEC, it said.
“The company acknowledged good performance so far this year and expect to comfortably surpass its financial targets for the year that will end in March 2011. The company is also set to launch its new Knowledge Process Outsourcing (KPO) operation through its fully owned subsidiary, Procifinity Limited, by February 2011. PCH will implement all its plans as laid down in the Prospectus issued in connection with its Initial Public Offering in August 2010,” the statement said.