Surveillance, Investigations and Enforcement Framework

Introduction

We engage in real time monitoring of the market to detect abnormal market movements and manipulations in order to protect the integrity of the securities market and its participants.

The Investigations Division is responsible for conducting investigations into the suspected cases of market mal-practices as stipulated in the Securities and Exchange Commission of Sri Lanka Act No.36 of 1987 (as amended) as well as any rules and regulations made thereunder. An investigation may be commenced based on a surveillance referral from the Surveillance Division of the SEC or consequent to the receipt of a complaint (which could even be anonymous). However, an investigation is commenced into any possible market offence only consequent to the receipt of the sanction from the Members of the Securities and Exchange Commission of Sri Lanka.

In addition to conducting investigations into alleged cases of market mal-practices in a timely, efficient and effective manner, the Division also assists the Legal and Enforcement Division of the SEC in connection with enforcement action/s, if any, to be taken against any person who is found to have committed an offence in terms of the provisions of the SEC Act (as amended).

Meanwhile our enforcement programme ensures compliance with securities regulation and is designed to foster a fair, transparent and stable market.

Process of Enforcement

Present Surveillance/Investigations/Enforcement Process Flowchart