Sri Lanka’s stock market which has come under considerable scrutiny over the past few months is not over regulated, but the ‘rush’ to regulate has to be stopped, according to a corporate lawyer.
"The regulations put out by the Securities and Exchange Commission (SEC) in the recent past had issues as there was no consultation with the industry.
The regulations weren’t consistent and predictable. You can’t rush to regulate – you must consult and then regulate,” former Director General of the SEC and now Precedent Partner of Nithya Partners Arittha Wikramanayake told the Business Times on the sidelines of a high-level two day capital market development workshop organized by the SEC last weekend outside Colombo.
At the conference
He pointed out that the recent introduction of price bands has not stopped manipulations. “The industry is smarter to find a way over it. You don’t put price bands - it’s fundamentally wrong and they may have resulted in over regulation,” he said.
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