What is the SEC?
The establishment and constitution of the Securities and Exchange Commission of Sri Lanka was initially provided for by the Securities and Exchange Commission Act No. 36 of 1987 (as amended by Act No. 26 of 1991 and Act No. 18 of 2003). The said Act has now been repealed and replaced by the Securities and Exchange Commission Act No. 19 of 2021.
What is the role of SEC?
Capital markets are a crucial part of an economy because they transfer money from the people who have to those who need it for productive use. i.e. long-term funds are raised by the business community and the public gets the opportunity to invest their savings for higher returns.
The SEC is tasked with regulating the capital market to ensure that the capital market is fair, efficient, orderly and transparent. To achieve these objectives the SEC maintains a regulatory framework that upholds quality disclosures, enhances corporate governance, prevents market abuse and promotes standards of conduct for market participants.