http://www.cse.lk/cmt/upload_cse_announcements/1681338177609_.pdf
In addition to the above, the SEC was concerned about some investment advisors not following best practices with regard to avoiding conflicts of interest between themselves and their clients. Therefore it was decided to introduce trading restrictions to all employees of Stockbroking Companies until the SEC is satisfied that the industry has adopted improved practices and effective compliance mechanisms on the procedures followed by licensed Stockbrokers in handling staff trades.
Therefore the Colombo Stock Exchange is further directed;
6. To prohibit Executive Directors, Employees, their spouses and their nominees of all licensed Stockbrokers and Stock dealers from selling listed shares purchased from the secondary market for a period of six (6) months from the date of purchase.
The above said prohibition shall not apply to shares purchased at an Initial Public Offering, shares owned as an entitlement under an Employee Share Option Scheme or with regard to subscriptions to a rights issue.
Very good move by the SEC. This will make it 'harder' for broker companies to pump and dump junk at the retailers. This was why stock brokering was a very profitable business. They can advise the clients through their stock 'analysts' or 'ad visors' to buy shares while selling shares owned by the broker holding company. This is what the so called retail friendly broker holding company has been doing. Also this is what happened with the recent public bank related fraud.
Anyway how come the brokers can sell shares knowing it's the best thing to do and at the same time advise the retailer to sell shares knowing that would be bad for their selling strategy. That's a conflict of interest. This is what brokers don't like about law and order. That's why they want you to blame the SEC. Or may be run crying to the president.