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.
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