Business Times

World Bank team to present consultation papers on SEC Act next month

A World Bank team here to assist the Securities and Exchange Commission (SEC) SEC to amend its law and also demutualization of the Colombo Stock Exchange will complete a consultation paper by next month, according to informed sources.

“They have made much progress since mid August and will put out a consultation paper on each area by November," an SEC source told the Business Times. He said what the SEC wants to do is essentially harmonise regulation with those of the region. He added that the regulator is also trying to incorporate stringent deterrents for manipulators to the SEC Act.

“The SEC needs to have a wider armoury of how to deal with offenders. We identified certain offences which are in the SEC rules and will incorporate them under the SEC Act,” the source noted.
The SEC has identified offences such as manipulation (which is attempting to interfere with the free and fair operation of the market and create artificial, false or misleading appearances pertaining to share prices), front running (where a broker executes orders on a share for his/his clients own account while taking advantage of advance knowledge of pending orders from his customers), etc to be incorporated under the Act.

“Presently there’s only insider dealing under this Act,” the source said. He said that by including these under the Act it’s easier for the SEC to uniform the offences. The source added that the regulator also plans to bring in stringent punitive action against these offences. He explained that in other countries, those who violate (SEC) regulations are typically required to pay both penalties and disgorgement. Penalties are punitive while disgorgement is about paying back profits made from those deals that violated the SEC's regulations.

The SEC says this is a better deterrent than the criminal sanctions which are now practiced. “This is also practiced in Malaysia and the burden of proof is lesser than in criminal sanctions. The proof is on the balance of probability,” he added.

Top to the page  |  E-mail  |  views[1]
SocialTwist Tell-a-Friend
Other Business Times Articles
Another IMF review mission expected in Dec: Cabraal
Deutsche Bank has no claim over Sri Lankan Government in oil hedging issue
CSE probing Asian Alliance foul play
SEC charges offenders, warns there’ll be more
United Motors seeking more acquisitions
Oasis in the city
COMMENT - Visitors and online visas
Climate for investment yet to improve in Sri Lanka:US Ambassador
DMS Electronics wins Microsoft award for the second successive year
RDB launches scheme for small and medium scale entrepreneurs
Online visas
Microsoft extends IT training grant for migrant workers
EFutures increases financial software service portfolio
Sino - Sri Lanka trade shows record US$ 2.1 billion volume
Serene wins again at World Luxury Hotel Awards
Fortress scoops prestigious ‘prize’ at World Luxury Hotel Awards
CPC: Petroleum tenders continue to be manipulated
Sir Richard Branson, US actor Edward Norton at Maldivian environmental summit
Over 250 educational institutions, 20 countries at EDEX Expo 2012
Multi Finance’s post-tax profits grows phenomenally by 334 %
ComBank cuts rates on Gold Loans
FIDIC World Consulting Engineers Conference in Davos
Sri Lanka Exporters’ Forum revived
‘Get the basics right’, urges management expert
Insurance industry steady growth this year: IBSL
Bank of Ceylon moves to adopt IFRS
SilverNeedle Hospitality launches in Asia including Sri Lanka
Youth project at soon-to-open Jetwing Lagoon
Iran invites Lankan exporters to trade shows
Sri Lanka setting up first electronics incubator
eMarketingEye to host Online Marketing Conference
MARKSS Healthcare opens regional distribution hub and warehousing complex
SriLankan Airlines says cuts losses, plans to return to profitability
Tourism and hospitality trade fair in October
Micromax launches Van Gogh X450 mobile phone
Industry calls for removing price bands, reinstating circuit breakers
SEC appoints expert panel to thrash out policy
SEC's Prathilabha to feature SEC Chairperson, its DG
Do not be greedy, rely on small profits
CSE to introduce risk mitigation systems in 2012
World Bank team to present consultation papers on SEC Act next month
Finance firms welcome new tight laws
New GK repayment plan blocked by depositor’s move
Seminar on property development
Colombo bourse tests resistance levels
CSE awaits systems failure report from MIT
Sri Lankan entreprenuers invited to vie for new Asian awards scheme
SL financial institutions face increase in cyber threats


Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 1996 - 2011 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved | Site best viewed in IE ver 8.0 @ 1024 x 768 resolution