Complaints

 

Complaints

The SEC’s objective as stated in its mission statement is to promote develop and maintain a securities market that is fair, efficient, orderly, and transparent. Underpinning these objectives is SEC’s ultimate responsibility of protecting investors. The SEC welcomes complaints from investors pertaining to improper conduct of market participants and other irregularities, in order to ensure the protection of investors in the securities market.

SEC for the purposes of administration has identified and categorized the following issues that could arise in the securities market:

COMPLAINTS AGAINST STOCK BROKERS AND STOCK DEALERS

  • The client is requested to read the documentation and agreements (client agreements, margin trading agreements and other terms or conditions etc.) provided by the broking company to ascertain whether there has been a breach/violation of the terms and conditions contained in the agreement
  • If the client believes that he has suffered a loss as a result of a breach/ violation of the terms of the agreement he must refer the matter in writing to the compliance officer of the Broker/Dealer Firm.
  • If the complaint has not been addressed in a satisfactory manner or the Broker Firm had delayed addressing the complaint for an unduly long time and if it appears that the Broker Firm is in breach of Member Regulations of the Colombo Stock Exchange (CSE), the complaint should be made to the CSE in writing. Such written complaint should be forwarded to CSE by filling the ‘Complaint Form’ issued by the CSE.
  • The Secretariat of the CSE will review and evaluate the complaint and the decision will be conveyed to the parties in dispute.
  • If the party is not satisfied with the decision made by the Secretariat such party may refer the matter to the Dispute Resolution Committee of the CSE for a review of the decision.
  • If the issue constitutes a breach of the SEC Act refer it to the SEC in writing. All documentation and facts relied upon should be attached to the written complaint.

COMPLAINTS AGAINST LISTED COMPANIES

  • The client is requested to read the documentation provided by the listed company to ascertain whether the client has complied with the instructions given in the relevant documentation. (Letters of Allotment, Form of Acceptance and Transfer, Dividend Warrants and Share Certificates etc).
  • If the client is able to identify any irregularity by studying the documentation, refer the matter in writing to the Secretary of the Listed Company or the Compliance Officer of that company depending on the services available.
  • If the complaint has not been addressed in a satisfactory manner, refer the complaint to the Colombo Stock Exchange (CSE). As per Section 10 of Listing Rules of the CSE, in the event of any violation and or non-compliance with any of the Listing Rules by any Company listed on the CSE, the CSE can take action against such Listed Company for such violation and or non-compliance. The complaint should be referred in writing and if an oral complaint is made, the substance of the complaint should be confirmed subsequently.
  • If the issue constitutes a breach of the SEC Act refer it to the SEC in writing. All documentation and facts relied upon should be attached to the written complaint.

COMPLAINTS CONCERNING TRADING IN SECURITIES

  • Complaints concerning trading in securities must be referred to the SEC in writing. All documentation and facts relied upon should be attached to the written complaint.
  • The SEC may carry out investigations or hold inquiries, as it may consider necessary in accordance with the SEC Act.

COMPLAINTS AGAINST REGISTERED MARKET INTERMEDIARIES AND MANAGERS OF UNIT TRUSTS

  • The SEC may carry out investigations or hold inquiries, as it may consider necessary

INVESTOR COMPLAINT FORM

Contact NO: 011- 2331017

(Use separate forms for each company / complaint)

Dear Sir/Madam,

Kindly take up the matter with the Company for immediate redressal of my complaint, particulars of which are as under


NAME OF THE INVESTOR

ADDRESS OF THE INVESTOR

NAME OF THE COMPANY

ADDRESS OF THE COMPANY

EMAIL ADDRESS (INVESTOR)

SEC ACKNOWLEDGEMENT REFERENCE NO. IN CASE OF REMINDER

NATURE OF COMPLAINT

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COMPLAINTS AGAINST THE COLOMBO STOCK EXCHANGE

  • Complaints against the CSE should be referred to the CSE for an appropriate solution.
  • If the issue constitutes an offence in terms of the SEC Act, the matter may be referred to the SEC in writing. All documentation and facts relied upon should be attached to the written complaint.