Misleading social media messages can get captured as offence under new SEC Act

Under the new SEC Act No. 19 of 2021, misleading social media messages on WhatsApp, Instagram, Twitter, etc. can get captured as an offence and this will be discussed at a top forum next week. 

The Section 130 of the new Act may capture some of these instances as offences:

(130) A person shall not make a statement, or disseminate information that is false or misleading in a material particular and which is likely to have the effect of raising, lowering, maintaining or stabilising the market price or volume of securities traded on an exchange licensed by the Commission or a platform operated by a recognised market operator, 

(a) without taking reasonable care to check the accuracy of the statement or information; or 

(b) if he knows or could reasonably be expected to have known that the statement or information is false or misleading in a material particular. 

This offence falls under the main offence that is not compoundable and action will be instituted by the Attorney General in the High Courts. The seminar will focus on the salient provisos that stockbrokers, investment advisors and traders need to be aware of. The new SEC Act is a paradigm shift in regulatory approach and is timely and caters to a new discloser based regulatory regime that stakeholders need to be aware of.

Discussion on this forum will also include market offences and their implications on trading, impact of changes on new capital market products and services, discretionary powers of the SEC, perils of being listed on a stock exchange and duties and responsibilities of directors under the new Act.  The seminar/webinar on ‘The New SEC Act and its Implications for Listed Companies and Market Participants’ will be held on 22 October from 2 to 5 p.m. on Zoom and the seminar at the Shangri-La Hotel.

The speakers will comprise Dr. D. C. Jayasuriya PC, former DG and Chairman, SEC, Sri Lanka, Dr. Arittha Wikramanayake, Precedent Partner, Nithya Partners, former DG, SEC Sri Lanka, Sujeewa Mudalige, Chief Executive Officer, PwC Sri Lanka, Kithsiri Gunawardena, CEO, LOLC General Insurance, former Director Legal SEC, and Malik Cader, former DG, SEC and Senior Advisor Ministry of Finance will chair and moderate the sessions. 

This webinar is for directors and senior management of listed companies, auditors and accountants 

company secretaries, stock brokers, entities regulated by the SEC, regulators, lawyers and compliance managers and investors. 

For registration call Yasmin 077 775 7748 or James 070 642 0642.