SEC Chairman pledges balanced regulatory role
The Securities and Exchange Commission of Sri Lanka (SEC) Chairman Faizal Salieh who met with representatives of the stock broking industry last week at the SEC said that although they have more teeth under the new Act, it is mindful of playing a balanced regulatory role with due consideration to both market development and market facilitation.
He emphasized the need to safeguard investors while helping the market grow by doing the right thing the right way and added that the stock brokers are the front liners in the market who engage with clients directly and therefore should act with due responsibility in advising clients and trading on the Exchange.
SEC Chairman also stressed the importance of self-governance at the market institution, market intermediary and market operator levels and their responsibility to safeguard and uphold the public interest.
Salieh urged the participants to move away from short-termism towards long-term sustainability collectively to build investor trust and confidence in the capital market. He added, “Our capital market must become a good alternative source for capital funds, like in other jurisdictions and that we are being watched by overseas and local investors on how the market behaves and is regulated”.
Salieh encouraged the stock brokers to develop in-house research capabilities which is now a requirement under the new SEC Act, review risk mitigation policies and processes, ensure succession planning and strengthen the compliance function.
He suggested that a Compliance Officers Forum be created to enable an exchange of views, and best practices and improve compliance in the market.
The industry participants while appreciating various initiatives taken by SEC, shared their ideas and suggestions to develop the market. Among the topics that received significant attention were the listing of identified State Owned Enterprises, the attraction of captive funds such as pension and retirement funds to the market and the listing of Green and Blue bonds, and Infrastructure Bonds.
Salieh requested all stakeholders to come together in driving the market sustainably and professionally.
SEC Director General Chinthaka Mendis, Colombo Stock Exchange (CSE) Chairman Dilshan Wirasekara, CSE Chief Executive Officer Rajeeva Bandaranaike and other officials of both the SEC and CSE, participated in the meeting.