Regulations have a increasingly difficult role in today’s context in balancing needs of creating efficient markets, preventing systematic risk and ensuring effective oversight.
The Securities and Exchange Commission Sri Lanka (SEC) made considerable progress in the year under review in ensuring appropriate safeguards for investors as well as provide regulation which allows enough impetus for capital market development, SEC Acting Director General Porf. Harendra Dissabandara said.
The evolving securities industry has also necessitated the SEC to deliver responsive regulation and enhance investor protection. The decisions taken by the SEC during the last year were taken keeping these challenges in mind, he said in the SEC Annual Report 2011. “During the year we took many progressive steps to ensure that we support and complement Sri Lanka’s economic drive. The SEC is committed to strengthening the laws, rules and regulations. We review them to ensure that they are bought in line with international standards, he said.
The SEC has finalized the amendments to the takeover and Mergers Code and Unit Trust Code and obtained the assistance of the World Bank to amend the Sec Act.