‘Those who live by the Dhamma are protected by the Dhamma’ SEC Chief tells investors

Securities and Exchange Commission (SEC) Chairperson Indrani Sugathadasa on Saturday used religion to bring some sanity to the capital market, currently marred by allegations of greed and power.

Before concluding her speech at the ceremonial opening of the SEC-organised Investment Day 2011 at the Sri Lanka Exhibition and Convention Centre, Sugathadasa, quoting Lord Buddha, said: “Those who live by the Dhamma are protected by the Dhamma, if not…”

This message of ethical and fair practices at the highly-patronised event was perhaps aimed at all investors, some of whom upon hearing the quotation chipped in saying that it applied to officials as well.

The SEC Chief said that positive independent regulation had been a key contributor to the rebound in capital markets in post-war Sri Lanka, in addition to the end of terrorism.

Sugathadasa also highlighted the voluntary and professional role played by commissioners, whose twice-monthly meetings span from 2 to 8 p.m. “We take decisions that are beneficial for the capital market from a long-term perspective as well as to ensure an efficient and fair market,” she added.

It was pointed out that following the end of the war and rebound in the economy, the capital market’s attractiveness for raising funds by companies as well as to reap higher returns by investors had grown.

“We are keen to expand the number of companies as well as the investor base,” she said, adding that the SEC had stepped up the effort to take the capital market to rural areas via events such as exhibitions, seminars and TV shows.

She thanked President Mahinda Rajapaksa and Chief Guest Basil Rajapaksa as well as Secretary to the Ministry of Finance Dr. P.B. Jayasundera for the support they extended to the capital market.

Minister Rajapaksa in his speech at the outset confessed that he was not a stock market investor, but emphasised how the end of the war and the ‘Mahinda Chinthana’ had given a big boost to the economy overall.

“The Government has created the best macroeconomic environment for the capital market to thrive and we are keen to ensure that the people become beneficiaries,” the Economic Development Minister added.

However, he cautioned that the Government was committed to protecting the public from unscrupulous entrepreneurs like Sakvithi or those who disguise themselves as philanthropists but destroy people’s wealth.

The SEC’s Investment Day drew around 15,000 people, mostly young, and the Colombo event was the most successful to date. The Daily FT saw people queuing up for entry even before 9 a.m., despite the official opening being at 9:30 a.m.

SEC Director General Malik Cader said the Colombo event was following successful road shows conducted in Galle, Kandy, Kurunegala, Negombo and Ampara, whilst Investment Day would be taken to areas such as Jaffna, Kilinochchi, Trincomalee and Batticaloa as well.

The full day Investment Day 2011 comprised over 50 stalls from the SEC, Colombo Stock Exchange and stock broking, unit trust management and top listed companies. Its objective was to showcase listed companies on the Colombo Stock Exchange and give potential investors the opportunity to obtain investment advice, discuss investment opportunities with stock broking companies, open CDS accounts to transact in shares, meet unit trust companies and explore investment opportunities in unit trusts. Participants also got the chance to witness the re-enactment of the open outcry system.

Investment Day 2011 featured prominent professionals from the securities industry, who addressed the gathering on a wide spectrum of topics throughout the day, ranging from investing in the stock market, unit trusts and the debt market in all three languages.