SEC Chairman emphasizes to implement Section 12 of Act

H.D.H Senewiratne

Newly elected Chairman Dr Nalaka Godahewa has specifically emphasized to implement Section 12 of the Security and Exchange Commission Act of No 35 of 1987, Acting Director General - Securities and Exchange Commission (SEC) Prof. Harindra Dissa Bandara said.

“Under Section 12 of the Act, it has spelled out certain objectives ie creation and maintaining market in which securities can be issued traded in orderly and fair manner, protection of interest investors, operation and compensation of funds and regulation of security market to ensure that professionalism and standards are maintained,” Prof Dissa Bandara said.

They would also initiate investigations into suspicious activities and share transactions of nearly two dozen companies listed in the stock exchange, which would be handled in an independent manner, he said.

According to SEC sources, inquiries by SEC Surveillance Division on 12 companies are pending “The SEC has issued warnings to some establishments and imposed fines on several others following the findings of its Surveillance Division,” the source added.

For instance a payment of Rs.3.3 million has been imposed on an investment advisor following charges of market manipulation of share prices. The SEC has issued notice on all the corporate establishments under scrutiny of the Surveillance Division and issued warning letters.

Two directors of Environment Resources Investments have been issued warning letters and a payment of Rs.3.3 million collected.