SEC to strengthen regulatory process of Colombo Stock Exchange

H.D.H Senewiratne

The capital market watch dog, the Securities and Exchange Commission (SEC) is now in the process of revamping all its activities to attract the Colombo Stock Exchange locally, as well as internationally. For this, the SEC is looking to regulate and to develop the CSE, its Chairman Dr Nalaka Godahewa said.

“At present our key focuses are to strengthen the regulatory process of the Colombo Stock Market and to develop the market in consultation with all stakeholders, which is now slowly, but steadily happening,” Dr Godahewa told Daily News Business.

“My main focus is also to implement four objectives in the SEC Act accordingly which was one of the priorities, “Dr Godahewa said. The SEC Act, stipulates objectives i.e. creating and maintaining the market in which securities could be issued in order to create a fair market, protecting the interest of investors, regulate the securities market to ensure that professionalism standards are maintained and operation and compensation of funds.

He said that the commission was right now hoping to consult all stakeholders, including the broker community; unit trust holders and other stakeholders, get their feedback without rushing for a decision to develop the market.

Dr Godahewa said that they were employing well experienced persons to run the SEC and for that purpose, they had appointed top business personality Dammika Perera as the new Deputy Director General, who would instrumentally be in charge of surveillance, supervision and investigations of the market.

Further, the SEC Act also could be amended in the future and the new amended Act would be a comprehensive one which would be addressing most of the crucial issues pertaining to the market.

This would also help promote the market not only among local investors, but also with overseas investors to create a strong and credible market in the region, Dr Godahewa said.

Dr Godahewa also said that not a single pending investigation of any company, but the commission was only investigating individuals who were involved in questionable dealings in the market, which had to be completed in three months.