SEC Expedites Investigations Into Stock Brokers And Investors

[Gainer]

The Securities and Exchange Commission (SEC) says that the investigation launched by the Commission into several stockbrokers and investors over alleged irregularities in the Colombo Stock Exchange (CSE) a few months earlier have now been expedited.

The SEC following suspicions of stock manipulations and insider trading in the CSE by certain stockbrokers and investors launched the investigations.

SEC Chairman, Thilak Karunaratne told The Sunday Leader that contrary to some media reports, none of the investigations initiated last year had been ruled out.

He said that the investigations were soft peddled at the time he took over as the SEC Chairman and that the investigations have now been expedited.

“At the first meeting of the Commission held after I took over as Chairman, it was decided to continue with the investigations,” he observed.

He explained that the regulator had to carry out its job of regulating if there were any misdeeds or fraudulent activities taking place in the stock market.

When asked if the SEC’s investigations would have a negative impact on the stock market, Karunaratne said it was unfortunate to see the regulator being placed in the limelight when the focus should have been on the issues that have led the regulator to step in.

“Instead of highlighting the companies and investors who are at fault and the stock brokers who have misinformed, it is the SEC that is in the limelight,” he noted.

According to Karunaratne, a group that has ganged up to weaken the regulator is focussing the Commission.
“They want a weak regulator in place,” he noted.

However, he said that no one has yet been accused of any irregularity since the investigations were on going.
“No one has been accused. They have only been asked for an explanation,” he added.

Karunaratne refused to divulge the basis to call for explanations from the stockbrokers and the investors saying it was unethical for him to do so.

It is learnt that the SEC has called for explanation from four stockbrokers and eight investors.

Be that as it may, the SEC’s move towards imposing strict regulatory measures and investigating into the actions of some stock brokers and investors led to much controversy during the latter part of last year.

The controversy finally led to the then Director General Malik Cader and later the Chairperson Indrani Sugathadasa exiting from the Commission.

http://www.thesundayleader.lk/2012/01/22/sec-expedites-investigations-into-stock-brokers-and-investors/

[bakapandithaya]

Gain bro, this paper article should b published under da heading Sri Lanka News Paper, moderators pls move this

[Shajesh]

The Securities and Exchange Commission (SEC) says that the investigation launched by the Commission into several stockbrokers and investors over alleged irregularities in the Colombo Stock Exchange (CSE) a few months earlier have now been expedited.

The SEC following suspicions of stock manipulations and insider trading in the CSE by certain stockbrokers and investors launched the investigations.

SEC Chairman, Thilak Karunaratne told The Sunday Leader that contrary to some media reports, none of the investigations initiated last year had been ruled out.

He said that the investigations were soft peddled at the time he took over as the SEC Chairman and that the investigations have now been expedited.

“At the first meeting of the Commission held after I took over as Chairman, it was decided to continue with the investigations,” he observed.

He explained that the regulator had to carry out its job of regulating if there were any misdeeds or fraudulent activities taking place in the stock market.

When asked if the SEC’s investigations would have a negative impact on the stock market, Karunaratne said it was unfortunate to see the regulator being placed in the limelight when the focus should have been on the issues that have led the regulator to step in.

“Instead of highlighting the companies and investors who are at fault and the stock brokers who have misinformed, it is the SEC that is in the limelight,” he noted.

According to Karunaratne, a group that has ganged up to weaken the regulator is focussing the Commission.
“They want a weak regulator in place,” he noted.

However, he said that no one has yet been accused of any irregularity since the investigations were on going.
“No one has been accused. They have only been asked for an explanation,” he added.

Karunaratne refused to divulge the basis to call for explanations from the stockbrokers and the investors saying it was unethical for him to do so.

It is learnt that the SEC has called for explanation from four stockbrokers and eight investors.

Be that as it may, the SEC’s move towards imposing strict regulatory measures and investigating into the actions of some stock brokers and investors led to much controversy during the latter part of last year.

The controversy finally led to the then Director General Malik Cader and later the Chairperson Indrani Sugathadasa exiting from the Commission.

http://www.thesundayleader.lk/2012/01/22/sec-expedites-investigations-into-stock-brokers-and-investors/

It is really a good work but it is too late. They should have taken actions against these prople longtime back. Manipulators are the main reason for the current market condition. Lots of people lost their interest when shares like colombo land, HVA, Blue and so many other shares were sky rocketed.. It is a good move by SEC. I really appreciate though they are late. If they would have done bit early, we would nt have lost our money like this

[Jana]

CSE can't give a good performance without manipulators...

Anyway already more than 20 billion worth Foreign investors gone out.. now most of the big investors under thread..then result they alos try to go out from the market... then who can hold or lift the market... Market automatically go down...and down....

[GMNet]

Excellent 'Step Forward' by the regulator in line with expert thinking and current market perception.
http://forum.srilankaequity.com/t15071-way-forward?highlight=Way+forward

[soileconomy]

It is one of of the main duties of SEC.I am waiting for the final outcome.
I think this is a good example (investigation+final result)and that will be healthy for CSE in the long run.
I recognize this as one positive fact for the market to go up.

[Shajesh]

CSE can't give a good performance without manipulators...

Anyway already more than 20 billion worth Foreign investors gone out.. now most of the big investors under thread..then result they alos try to go out from the market... then who can hold or lift the market... Market automatically go down...and down....

You know why foreigners are going ....Sri lankan market is driven on speculation and all worthless shares are going up ( some of them are more 100 PE) and not the fundametally strong shares.....look at LOLC, SAMP,RCL,..................(rarely entered into positive trend during the past many months but their performance ...very impressive and expected to go up in future).....It is so sad to see this kind of situation in our market.......this is where the manipulators play the game and make these shares less attractive and bring the prices down of good counters and all other worthless shares are going up.....But the situation will soon improve as the best companies will be targeted by HNWI soon......Because lots of people burnt their fingers with speculative shares and it is not going to work out much in future. I expect the market will get the confidence back and it will start slowly enters into positive trend from next week and by Feb/ march you can see a huge rally.

[Hiru]

As this is a one of SEC's duty to create a level-field, this would also restore the participants confidence in few months time. However, rigidity in these statements are expected to presents when actual investigations are done!