PROCEDURE FOR HANDLING 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:

Most of the complaints made against stockbrokers are related to the quality of advice or the level of the services provided by them

Most of the complaints made against listed companies are related to issues regarding shares, dividends, bonus issues, rights issues and /or dissemination of financial information.

Most common trading activity complaints are in relation to insider dealing, market manipulation and/or front running.

Most common complaints made against Market Intermediaries and managers of Unit Trusts are in relation to breach of agreements between client and the service provider.

The Colombo Stock Exchange welcomes comments and complaints in their role as a market operator.

All complaints made to the SEC should be in writing. However, information provided orally will be permitted in exceptional circumstances as determined by the SEC.

(E.g. whistle blowing)