SEC Chief insists on independence at COPE

SEC Chief insists on independence at COPE




COPE commends the regulator for its performance, guarantees support

The Securities and Exchange Commission (SEC) Chairman Tilak Karunarante had insisted on independence when SEC appeared before the Committee on Public Enterprises (COPE) yesterday, Mirror Business learns.

According to sources, this request was made in response to a query by COPE Chairman D.E.W. Gunasekera asking how COPE should support SEC to carry out its duties.

SEC Chairman Tilak Karunaratne had told the COPE that SEC would like to come directly under the Parliament to ensure its independence, which was in return endorsed by the COPEChairman.

The SEC including its Chairman, Commission Members and the entire directorate were yesterday summoned to the Parliament by the COPE for a routine meeting which commenced around 3.15 pm and lasted for about two hours.

“The COPE was really impressed by the SEC’s work so far and also its performance,” COPE Chairman D.E.W. Gunesekara told Mirror Business. “We found that SEC Act needs amendments and the institution should be given more powers to tackle market misconduct,” he pointed out.

During the recent meeting between President Mahinda Rajapaksa and market stakeholders, former SEC Chairman Chari de Silva had said that SEC needed more teeth as for the last 25 years, the regulator had not sent any person guilty of market misconduct to jail.

“Everybody in the COPE agreed that 90 percent of the Colombo Stock Exchange is controlled by a handful of big investors and therefore the SEC should be given more powers to protect small shareholders,” Gunesekera said.

“And we told the SEC that the COPE will back them to the hilt in creating a market which ensures fair play and integrity,” he added.

The COPE during the meeting also found out undue delays on the part of SEC with regard to amendments, due to timeconsuming process involved, but assured the SEC that they will make a point to the Finance Ministry to speed up the process.

The sources further revealed that the consensus amongst the COPE members was that the Colombo bourse was loosely regulated, which United National Parliamentarian and COPE member Eran Wickramaratne openly mentioned during the meeting.

However, sources said that UNP Parliamentarian and COPE member, Dayasiri Jayasekera was against this view, and stated that the Colombo Stock Exchange is overregulated.

Sources also revealed that UNP Parliamentarians extensively questioned the SEC about the so-called market mafia, a fact that SEC acknowledged but refused to disclose any names.

Apart from that they had tried to extract information about the controversial investments the Employees’ Provident Fund has made in the Colombo bourse and the scandalous NSB-TFC deal.

However, according to sources, the SEC was able to make the COPE members realize that the EPF investments and NSB’s controversial purchase of TFC shares at a premium price didn’t fall under the SEC’s jurisdiction.

However, in response to a query as to why the SEC reversed the NSB-TFC deal, the SEC Chairman Tilak Karunaratne had told COPE members that such an action was taken to avoid systemic risk that could have been arisen from a bad example set by the state-owned savings bank

http://www.dailymirror.lk/business/stock/20937-sec-chief-insists-on-independence-at-cope-.html

Thanks Dasunh for sharing the article.

The proposal to bring the SEC directly under the Parliament is a timely one but I doubt that it would be favoured by the Govt.

As for the Dayasiri's comment on overregulation no one should be surprised of his views as his recent intentions are now public knowledge.

Hapu,
Can you please elaborate the following.
Do independent institution, commissions or bodies with executed powers exist?

"SEC Chairman Tilak Karunaratne had told the COPE that SEC would like to come directly under the Parliament to ensure its independence, which was in return endorsed by the COPE Chairman."

worthiness wrote:Hapu,
Can you please elaborate the following.
Do independent institution, commissions or bodies with executed powers exist?

"SEC Chairman Tilak Karunaratne had told the COPE that SEC would like to come directly under the Parliament to ensure its independence, which was in return endorsed by the COPE Chairman."

None, under the present constitution- especially after the 18th amendement, because the 18th amendment diluted what-ever independant institutions we had at that time. If any one genuinely interested in independance of any institution they should remove the 18th amendment & restor the 17th amendment.

No one can safeguard small investees without improving the capacity of big investors. Even if all small fellows unite together they want be able to find capital to finance more than two three big businesses.

Those who want to secure right of the small fellows, please safe guard big and HNWI. Take your hand off from HNWIs. If so market will be automatically improved and small fellows too will be able to come up. If this simple fact cannot be understand and want to give your own medicine, big will die with others.
Those who have this sense are only suitable for the management of SEC. Everybody must know that most of the small fellows buy shares to sell big fellows and not for investment purpose.

No one can safeguard small investees without improving the capacity of big investors. Even if all small fellows unite together they want be able to find capital to finance more than two three big businesses.

Those who want to secure right of the small fellows, please safe guard big and HNWI. Take your hand off from HNWIs. If so market will be automatically improved and small fellows too will be able to come up. If this simple fact cannot be understand and want to give your own medicine, big will die with others.
Those who have this sense are only suitable for the management of SEC. Everybody must know that most of the small fellows buy shares to sell big fellows and not for investment purpose.

Bullrun,
I agree with you. One more thing, There is a self apointed activist Vicknaraja who claimed to be fight for small investors rights.Does any one know his holding in all the companies?

Big or small, fairplay at the SEC will protect them all.

If rule of the jungle (survival of the fittest) is allowed in the SEC, no one will be safe. Genuine investors need not have any fear on the regulator, if they play their game according to the rules. All the nonsense talk about "over-regulation" is made by a few people who wants to continue manipulation at the expense of the majority.

If the regulater is allowed to do his job without any hindrance, all genuine investors will participate in it and the market forces will take care of the rest. It is simple as that.

Bullrun

I cant understand. What do you mean by take your hands off from HNWI? I dont mind taking hands off from honest HNWI. Genuine investors. All HNWI are not culprits. But what about those offenders? Do you want them to be set free? my guess is that there are only few, SEC should take action against them. If they do it, I will back them for sure

Justice & equality should prevail in any kind of environment irrespective of many differences. Why there should be a privileged & honored class in capital market? Let regulations restrain to thrive elite group's wealth at the expense of majority though the investment value is much smaller than that of HNWIs.
Once the market confidence is well placed in a lawful manner distributing the fairness to everyone, authoritative parties will enter the market over the period of time.

worthiness wrote:Justice & equality should prevail in any kind of environment irrespective of many differences. Why there should be a privileged & honored class in capital market? Let regulations restrain to thrive elite group's wealth at the expense of majority though the investment value is much smaller than that of HNWIs.
Once the market confidence is well placed in a lawful manner distributing the fairness to everyone, authoritative parties will enter the market over the period of time.

Its good news to here at least there is one organ of the Govt concerned with the real issue at the bourse, but what really can they do? Other than reporting what they see is fair. If the executive does not want to implement their recommendations, it will be a futile exercise. You are right worthyness there.

Of course, public interest litigants can go to courts armed with their recommendations. Food for thought, for the new association being formed. They have lot of work to do.

Dasunh wrote:Bullrun

I cant understand. What do you mean by take your hands off from HNWI? I dont mind taking hands off from honest HNWI. Genuine investors. All HNWI are not culprits. But what about those offenders? Do you want them to be set free? my guess is that there are only few, SEC should take action against them. If they do it, I will back them for sure

I do not wish to have field with no rules and regulations. What I meant is the present down turn was started with the unnecessary interferences of so called independent regulators!
They started with 10% rule, credit control and several other things. With all these things could they be able to manage? What happened ultimately the small scale investors had to pay a lot out of the small savings they had.
The rulers could have identify the culprits and punish them only without punishing everybody! Now the patient has died not because of the illness but because of the treatment!
There is a responsibility to safeguard their investment by the small scale investors too. They having known very well invest in bullshits merely looking at others. I remember when I go to trading Floor; indexes are going up 12 p.m onwards. The people in offices come and see which one is going and buy with no clue about what is buying! From next day onward started to blame politicians and all Government servants saying that they do not work and foolish etc. But the fellow can’t wisely manage his Rs.15,000.00 got as salary but can advise to manage billions of money!
Manipulators manipulate because of this foolish mentality. The brokers (the other herd of bulls) put manure by saying all sort of nonsense forcing polish to jump further deep in the mud.
Regulators came to rescue the innocent but they further drawn due to the wise and timely action of them!
That is what I wanted to highlight. You can’t save small scale investors merely introducing more and more rules.
How many people invest money in bogus places even after several culprits such as Sakwithi, Daduwam Kothalawala was highlighted. Everyday this is happening. How many numbers of pyramids schemes are operating in Sri Lanka?
If the regulators introduce more and more rules just to safeguard those foolish no HNWI and Institutes would come to the market allowing the market to die naturally. I do not want to safeguard wrong doers. They have to be punished then and there.

"patient has died not because of the illness but because of the treatment"

well saied mate