SECURITIES AND EXCHANGE COMMISSION OF SRI LANKA

 

PRINCIPAL OFFICERS OF THE SECRETARIAT

Mr. Channa de Silva  - Director General
Miss. Marina Fernando, Deputy Director General

Mr. Dhammika Perera - Director, Investigations
Mr. Malik Cader - Director, External Relations and Market Development
Miss. Ianthie Jayaratne - Director, Finance and Administration
Miss. Marina Fernando Director, Legal and Enforcement
Miss. Marie Surana Fernando - Director, Corporate Affairs
Mr. Chandu Epitawala - Director, Surevillance and Research
Mr. Vajira Wijegunawardene - Director, Capital Market Development
Mr Namal Kamalgoda - Director, Capital Market Development- Asset Management
Mr Vasula Premawardhena- Director,Media & Communication
Mr. Toshihisa Iida -
Consultant
Mrs.Tharanga Kariyawasam - Director Supervision
Dr. D B P H Dissa Bandara - Director- Financial Services Academy

DIVISIONS
1. CORPORATE AFFAIRS DIVISION

The Corporate Affairs Division reviews market disclosures and other information that listed companies are required to disseminate to the public to reduce asymmetry of information. The Division monitors compliance with the companies' Takeovers and mergers code. It further inquires into and resolves complaints of market intermediaries and investors. With the assistance of a real time surveillance system continuous monitoring is carried out of share trading activities of Listed Entities in order to detect unfair transactions that violate laws and regulations. The Division processes and approves off- the- Floor transfers of securities and is further responsible for reviewing de-listing applications. It is also responsible for approving the issuance of unlisted securities of listed entities. The Division approves the allotment of securities of companies that allot securities prior to obtaining a listing, but intends to obtain a listing on the stock exchange within a period of twelve months.

The responsibilities of the Unit include receiving and collating input on policy issues including the undertaking of comparative surveys in order to ascertain the present status, including gaps, in the capital market based on such input. The Unit is also responsible for the analysis, formulation and recommendation of policies, monitoring of policy implementations and providing information-backstopping services to the Director General and other Divisions to assist in decision making. This also includes information relating to regional and international trends and developments as well.

2. SUPERVISION DIVISION

The Supervision Division has responsibility to monitor the financial and operational performance of licensed market intermediaries, including Stock Broker – Dealers, Unit Trust Management Companies, Margin Providers, Investment Managers, Underwriters, Credit Rating Agencies and Clearing House.

The Division's primary objective is to ensure that the licensed market intermediaries are financially stable and operationally viable which is monitored through both On- site and Off- site risk based supervision of the licensed Market Intermediaries. In addition the Division is also entrusted to conduct regulatory audits of the Colombo Stock Exchange. Further the Division monitors due compliance with the laws and regulations of the Securities Exchange Commission by the licensed Market intermediaries.

 

3. INVESTIGATIONS DIVISION
 

The responsibilities of the Division includes conducting investigations and inquiries into complaints of alleged fraudulent activities in the securities market and violations of securities laws, rules and regulations that appear to require the institution of legal or other disciplinary proceedings and/or the imposition of sanctions against the transgressors.

4. EXTERNAL RELATIONS AND MARKET DEVELOPMENT DIVISION
 

The Division is responsible for Stakeholder relations with emphasis on education. Through its training arm, the division is actively involved in facilitating the creation of a literate and educated society on Capital Markets by providing education and training tools that promote continuous learning and skills upgrading. The development wing is responsible for initiating plans to develop the securities industry by introducing/refining Market development activities.

5. FINANCE AND ADMINISTRATION DIVISION
 

The main responsibility of the Division is to ensure that the Commission and its respective Divisions function in a smooth and efficient manner. The Division is entrusted with a wide range of responsibilities which include financial control and budgeting, recruitment and personnel management, management of the Commission’s funds, supervision of general maintenance and upkeep of the Secretariat, internal risk management and procurement and management of office facilities and supplies.

6. LEGAL AND ENFORCEMENT DIVISION
 
The Legal & Enforcement Division is headed by the Director Legal and Enforcement who functions as “Legal Counsel” to the Commission and its Divisions. The Division is responsible for reviewing and proposing amendments to the securities laws and the handling of all legal proceedings instituted by and against the Commission. The Division is responsible for the processing of the licences of Stock Exchanges, Stock Brokers and Dealers, Unit Trust Management Companies and Market Intermediaries.

7. SURVEILLANCE AND RESEARCH DIVISION

8. CAPITAL MARKET DEVELOPMENT DIVISION

In 2007, the SEC established a Capital Market Development Division to promote its “nurturing” role to facilitate the development of the Sri Lankan capital market. The Division is responsible for the implementation of the Capital Market Master Plan (CMMP), which charts the future direction of the capital market in the country; and supports other market development initiatives. In this context, the Programme Management Office (PMO) of the Division needs to work closely with key stakeholders of the country's financial system namely the Ministry of Finance, Colombo Stock Exchange and the Central Bank of Sri Lanka to fulfill its objectives.

The implementation of the CMMP is phased out over a period of 10 years running through 2006-2015 (Please refer the CMMP for details). In May 2007, a number of projects were identified for implementation in the first 3 years of operations. The project selection and kick off was based on the following:

  • Market impact: Contribution of a particular project towards market/product development
  • Feasibility of implementation: It was presumed that the macroeconomic environment would be stable and favorable market sentiments would continue to prevail.
  • Commitment and support of all stakeholders: Favorable and positive support was assumed.
These projects include amongst others:
  • Establishment of the Capital Market Institute to train market participants
  • Formulate strategies to develop a vibrant corporate bond market.
  • Establishment of Jathika Isura (JI) to manage GoSL assets
  • Facilitate the introduction of derivatives to the Sri Lankan capital market
  • Development of the Unit Trust Industry
  • Demutualization of the Colombo Stock Exchange
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