SEC to maintain best regulatory practices:

Vibrant capital market ensured

Charumini DE SILVA

A vibrant capital market and a robust financial system will play a major role in the next phase of the country’s economic development, Securities and Exchange Commission (SEC) Chairperson Indrani Sugathadasa said.

The SEC is committed to maintain the best regulatory practices, ensure investor protection and uphold the integrity of the CSE, she said speaking at the Investment Day 2010 held at the Sirimavo Bandaranaike Memorial Exhibition Centre.

An educational exhibition and seminars on the capital market was held at the BMICH yesterday. Here CSE demonstrates how daily trading activities happen at the stock market at the exhibition. Picture by Samantha Weerasiri

The SEC and stakeholders of the CSE organized this educational exhibition and seminars on the capital market to mark the 23rd anniversary of the Securities and Exchange Commission yesterday.

“The number of total Central Depository System (CDS) account holders is 530,000 at present. But this is less than three percent of the country’s population. Out of the registered account holders only about eight percent are active in the capital market. During 2009 the number of accounts with at least one transaction was 37,000”.

“With the dawn of peace and from January to September this year, the number of accounts with at least one transaction has increased up to 64,000. This favourable situation compelled the SEC to take appropriate measures to broaden the investor base and also to create an environment, which is conducive for the investors to be more active and confident,” Sugathadasa said.

The CSE has been ranked the best performing capital market in the world for 2010, with a growth of over 95 percent.

The Colombo Stock Exchange (CSE) has created history by establishing new records in almost all aspects of trading from total market turnover to market capitalization Rs two trillion milestone recently.

“However, sustaining this phenomenal growth in the stock market is a challenge. The stock market should venture into rural areas further to achieve the objective of creating a share owning democracy in our country. More investors in the stock market will create additional liquidity.

The CSE is already operating in four provinces and the SEC expects that the CSE will venture into other provinces as well especially to the North and East.”

The Chairperson said the promising growth in our capital market was mainly backed by the prevailing peace.

“The phenomenal growth in the CSE is a sure and a positive sign that Sri Lanka’s business landscape is fast changing for the better. The Government’s political stability has given investors a positive outlook and much confidence,” she said.