SEC’s recent actions praised by good governance activist
View(s):Good governance activist and stockmarket investor K.C.Vignarajah has praised the Securities and Exchange Commission (SEC) for taking steps to create investor interest and confidence, once again, in Colombo’s stock market.In a letter to SEC Chairman Tilak Karunaratne, he said the criticism that the wrongdoers and the mafia had got around the powers that be, to use unethical and unlawful, escape routes from adhering to public policy for public good, created by the earlier corrupt regime is now muted.
“Appreciation of the SEC has begun on a broad scale,” he said, praising Mr. Karunaratne and other officials.Mr. Vignarajah, who has been a strong campaigner for accountability and transparency in the market and considered a ‘pain’ by many conglomerates where he has sizable shares and persistently raises issues at AGM’s and board-level meetings, said it was clear that inspite of many obstacles and insufficient supporting staff, (with the necessary motivation and capacity), the SEC has succeeded in taking firm action in many areas of stock market reform.
“The collection of evidence and channeling them to the relevant authorities to investigate and apprehend those who caused much loss to shareholders and harm to the country’s image is most commendable. The Financial Crimes Investigation Division (FCID) taking action against former SEC top officials has restored faith, that funds of investors and the public are being carefully monitored,” the letter said.He said investors were also pleased that steps have been taken to strengthen the rules and regulations to prevent wrongdoing to, and oppression of, Independent Minority shareholders(IMS); to expedite the process of compensation of victims while recovering the loot from the errant Controlling Interest and Related Parties (CI&RP) and punishing the wrongdoers administratively/civil action/criminal prosecution process.
“These actions are most commendable considering political compulsions as a detraction. However, we believe the leadership of President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe will support you fully as they have the will to lead a good team to usher in justice, fairplay, prosperity peace and harmony for all in our country,” he told Mr. Karunaratne in the letter.”This determination will certainly help you in your brave efforts to bring in protection for ‘witnesses and whistleblowers’ who do their duty to safeguard the interests of honest investors and the economy of our country.”Referring to the de-listing regulations, he said strong representations have been made against de-listing. He said independent shareholders should have rights to nominate independent directors, auditors and to good governance, transparency and accountability.