SEC warns against bogus agents offering shares in int’l stocks 

The Sri Lankan capital market regulator on Wednesday warned of a growing number of phone calls from agents of overseas based ‘brokers’ who target local shareholders, to sell shares in exchanges abroad 'guaranteeing' high returns. 

“The Securities and Exchange Commission of Sri Lanka (SEC) as the apex regulator of the Sri Lankan Capital Market is legally empowered to only issue licences to stock broker firms to operate in Sri Lanka,” a notice by the SEC said. It further added that the SEC doesn’t grant licences to agents to operate in other jurisdictions or act as agents of international stock broker firms. 

These callers can be very persistent and extremely persuasive, a SEC official told the Sunday Times noting that it is not just the novice investor that has been duped in this way but some of the calls had been for those successfully investing for several years. Shareholders are advised to be very wary of any unsolicited advice or offers to buy shares in international exchanges, he said. (DEC)