New SEC Bill enters P’ment

Thursday, 7 December 2017 01:15 - - {{hitsCtrl.values.hits}}

By Ashwin Hemmathagama, Our Lobby Correspondent

The New Securities Exchange Bill, which provides the necessary legal framework for curbing market misconduct and providing protection for whistleblowers, was moved in Parliament yesterday.

The Government aims to repeal the Securities and Exchange Commission of Sri Lanka Act No. 36 of 1987 and replace it with the new Bill, which will provide for establishing the Securities and Exchange Commission of Sri Lanka; to regulate market institutions, public offers of securities, market intermediaries; to deal with market misconduct and to meet the challenges encountered by securities markets in an effective and efficient manner.

The Bill encompasses the SEC’s powers, duties and functions of the Chairman, and staff; market and market institutions, establishment, operation and regulation of exchanges, clearing house, central depository, issue and trading of listed and unlisted securities, protection of client’s assets, establishment of a and role of recognised market operator.

The Bill widely expressed market misconduct, lists prohibited conduct and insider trading, funds of the Commission and the funds to provide compensation to investors, provisions relating to the institutional framework and provisions relating to the enforcement mechanism.