Why an Acting DG at SEC?

The move by the Minister of Finance to appoint an Acting Director General at the Securities and Exchange Commission (SEC) has raised many an eyebrow.

The SEC announced yesterday that Dr. D.B.P. Hareendra Dissabandara has been appointed as the Acting Director General of the SEC with effect from 2 April 2012. In support of the appointment SEC said he is the Professor of Finance at the Faculty of Management Studies and Commerce, University of Sri Jayewardenepura, and has been released to the SEC.

The fact that he is on secondment at the SEC was the reason for the Acting appointment.

However analysts said that the SEC Act doesn’t have provisions for an Acting DG as only two positions are clearly laid out- either the DG or Office in Charge, in the absence of the former. Given this opinion, some wondered whether functioning and decisions taken by the Acting DG would have any validity. Another opinion was that since the Act only specifies the post of DG to be appointed by Finance Minister, whether he should be involved to make an acting appointment. If the Commission wished it could have continued with the OIC option.



Market sources linked the acting appointment setting to SEC failing to find a suitable candidate to take the post of full time DG despite two attempts. Others said the Commissioners weren’t unanimous in the recommendation of Dissabandara whilst some insists he is the best from those who had applied. Sources who know the inner workings at SEC said having failed to find a suitable candidate, the Commission had the option of inviting a person of their choice to take up the post. The post fell vacant in November when longstanding executive Malik Cader resigned after serving for an year to take up another posting at Finance Ministry. His as well as Chairperson Indrani Sugathadasa’s exit subsequently was controversial as they happened midst allegations of over regulation as well as outside pressure.

Apart from the new Acting DG, the SEC also announced the appointment of two new Commissioners as well as an Acting Director General following approval from the Minister of Finance and Planning.

Deputy Secretary to the Treasury Sajith R. Attygalle has been appointed as a Member of the Commission with effect from 23 March 2012. Attygalle will succeed D. Widanagamachchi, Deputy Secretary to the Treasury, who resigned from the Commission on 23 March 2012.

Dr. S.W. Prathiba Mahanamahewa, Dean – Faculty of Law, Kotelawela Defence University has been appointed as a Member of the Commission with effect from 12 March 2012 to succeed C.P.E. Gunasingam, who resigned from the Commission on 21 December 2011.

The Commission of the SEC also announced that Ayanthi Abeyawickrama has been appointed Director Legal and Enforcement with effect from 2 April 2012. Prior to this appointment she was the Asst. Director, Legal and Enforcement of the SEC.