ECONOMYNEXT – Sri Lanka’s new Chairman of the Securities and Exchange Commission, Faizal Salieh has called for self-governance and responsible action from market intermediaries to build investor trust and confidence.
Stock brokers are the front liners in the market who engage with clients directly and therefore should act with due responsibility in advising clients and trading on the Exchange and the “market grow by doing the right thing the right way,” he was quoted as saying at a meeting.
Market participants were urged to move away from short-termism towards long-term sustainability collectively in order to build investor trust and confidence in the capital market,’ the statement said.
A new SEC had more teeth but the regulator was “mindful in playing a balanced regulatory role with due consideration to both market development and market facilitation,” according to the statement.
“Our capital market must become a good alternative source for capital funds, like in other jurisdictions and that we are being watched by overseas and local investors on how the market behaves and is regulated,” he had said.
Salieh encouraged the stock brokers to develop in-house research capabilities which is now a requirement under the new SEC Act, review risk mitigation policies and processes, ensure succession planning and strengthen the compliance function.
He jihad suggested that a Compliance Officers Forum be created to enable exchange of views, best practices and improve compliance in the market.
Listing of state enterprises, attracting pension funds to the market, and listing Green and Blue and infrastructure funds were discussed, the statement said. (Colombo/Mar26/2023)
It will be ineffective without justice being done to the investors who were taken for suckers and played out a few years ago. There was blood flowing on the trading floor, shockingly it was criminalized to be the worst-managed market. The perpetrators are free to roam.