SEC won’t bow to pressures on probes - Chairman

Reuters - Sri Lanka’s Securities and Exchange Commission (SEC) has said the regulatory body will not bow to any pressure against investigating allegations of market manipulation and undue price fluctuations.

SEC Chairperson Indrani Sugathadasa also reiterated a denial of speculation that her deputy is being forced to resign after influential investors complained to President Mahinda Rajapaksa, who has the SEC in his portfolio as finance minister.

SEC Director General Malik Cader has caused unhappiness in some circles for his moves to curb manipulation and excessive margin trading.

Some investors and brokers say such practices are hurting the Colombo Stock Exchange, which was Asia’s best-performer in 2009 and 2010.

The SEC has been moving to bring its regulations in line with global best practice, as part of a government plan to give greater confidence to foreign investors.

“I don’t think anybody will tell us to stop investigations.

I don’t think that will happen,” Sugathadasa told Reuters at a weekend investor exhibition in Colombo.

Referring to inquiries the SEC started that involve some influential investors, Sugathadasa said: “We are still finding facts and discussing with them.”

She added “If we think it needs to be investigated, then that’s the last stage.”

“They might want us not to regulate.

Then there is no point of having a regulator and the government can close the regulator. But I don’t think the present government wants to do that,” Sugathadasa said.