The Securities and Exchange Commission (SEC) will take rigorous action against those who commit regulatory breach,which include market manipulation,misconduct by regulated entities and corporate disclosure-related offences,Chairman Tilak Karunaratne said.
"However, the current Sri Lanka securities law, which was enacted 28 years ago, has its drawbacks with the enforcement framework built on criminal prosecution and compounding of offences," he said in the SEC annual report.
He said in the past the SEC has mainly resorted to issuing warning letters, imposing suspensions on investment advisors and compounding.
"In tandem with the expansion of the capital market it has been considered necessary to make changes to the SEC Act to broaden the range of enforcement powers", Karunaratne said.
The proposed amendments to the SEC Act will introduce a range of administrative and civil sanctions, including the seeking of restitution to any person aggrieved.
The SEC increased its efforts to expedite the amendments since this will pave the way for credible regulation and market confidence. In addition the amendments to the Act will align the SEC governance structure with International Organisation of Securities Commissions (IOSCO) standards, facilitate the introduction of new categories of market intermediaries and regulation of their business conduct and provide for the regulation of derivative products.
In line with our mandate the SEC continue to monitor, mitigate and manage risk with the aim of promoting integrity in the market. Through our Risk Based Supervisory Framework we attempt to focus on capital and other prudential requirements for market intermediaries, protect client assets and compliance with internal controls on a regular basis. Our supervisory role further extends to mitigating the settlement risk in the securities market.
Towards achieving this objective we are getting together with the Colombo Stock Exchange (CSE) to setup up a Clearing House which will act as a Central Counterparty (CCP) for settlement of securities, shares, corporate debt and any other instruments coming under our purview.
www.dailynews.lk
"However, the current Sri Lanka securities law, which was enacted 28 years ago, has its drawbacks with the enforcement framework built on criminal prosecution and compounding of offences," he said in the SEC annual report.
He said in the past the SEC has mainly resorted to issuing warning letters, imposing suspensions on investment advisors and compounding.
"In tandem with the expansion of the capital market it has been considered necessary to make changes to the SEC Act to broaden the range of enforcement powers", Karunaratne said.
The proposed amendments to the SEC Act will introduce a range of administrative and civil sanctions, including the seeking of restitution to any person aggrieved.
The SEC increased its efforts to expedite the amendments since this will pave the way for credible regulation and market confidence. In addition the amendments to the Act will align the SEC governance structure with International Organisation of Securities Commissions (IOSCO) standards, facilitate the introduction of new categories of market intermediaries and regulation of their business conduct and provide for the regulation of derivative products.
In line with our mandate the SEC continue to monitor, mitigate and manage risk with the aim of promoting integrity in the market. Through our Risk Based Supervisory Framework we attempt to focus on capital and other prudential requirements for market intermediaries, protect client assets and compliance with internal controls on a regular basis. Our supervisory role further extends to mitigating the settlement risk in the securities market.
Towards achieving this objective we are getting together with the Colombo Stock Exchange (CSE) to setup up a Clearing House which will act as a Central Counterparty (CCP) for settlement of securities, shares, corporate debt and any other instruments coming under our purview.
www.dailynews.lk
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