The Securities and Exchange Commission (SEC), in a bid to ensure the best interest of all stakeholders in the share market, a consultative committee to review all policies, regulations and decisions before they are announced, has established a Capital Market Industry Consultative Committee.
They said that this was on the back of a key recommendation which was put forward by industry participants at the May Capital Market Development Workshop. The 14-member committee includes an investor.
Analysts say that there’s a huge transaction cost in this retail – driven market and that the regulations (which were recently implemented) pose a serious issue. Aritta Wickramanayake, Partner Nithya Partners told the May workshop that the shot-gun approach to stockbroker credit regulation which was imposed by the regulator a couple of months ago is an example of large transaction costs.
The SEC said in a statement that the current positive economic and political environment in the country has emphasised the need for a capital market which can adapt to meet new challenges. It also said that the task in determining policy has increased in complexity.
The others in this committee are the SEC Chairperson, its Director General along with a SEC Commission Member, a Deputy Governor of the Central Bank, Chairman - Colombo Stock Exchange (CSE), CEO - CSE, President- Colombo Stock Brokers Association or his nominee and President - Unit Trust Association of Sri Lanka or his nominee, President - Margin Provider’s Association, President – CFA (Association of Sri Lanka), a Debt Market Specialist, an Equity Market Specialist and an Equity Market Legal Specialist. The SEC said that the expertise and experience of a well represented committee will strive to make well rounded decisions and it is expected to meet on a quarterly basis. |
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