SEC's Response to COVID-19
SEC's Response to COVID-19
Learn about the action taken by the Securities and Exchange Commission of Sri Lanka’s (SEC) actions taken to support the Sri Lankan Stock Market and the economy as a whole to ensure the stability of the financial system amidst the novel Corona virus (COVID-19) pandemic.
The emergence and the spread of the COVID-19 pandemic has affected economic activity on a global scale, and at the SEC we understand the seriousness of the situation and have recognized it as a significant threat to the business operations of and the regulations of the Capital Market in Sri Lanka.
First and foremost the SEC efforts focus on the health and well-being of our employees and all Sri Lankan’s to prevent the spread of the COVID-19 pandemic. We continue to work closely with other financial regulators in Sri Lankan and globally to take proactive measures to curtail the effects of the COVID-19 pandemic on the stock market and its other stakeholders.
The SEC has setup a “Taskforce – Better Regulation” (TFBR) in order to assess the risks emanating from the COVID-19 outbreak. The taskforce comprises of from twenty-five staff members of the SEC from various divisions of the SEC who have gathered with to evaluate the impact of the COVID-19 outbreak on the Sri Lankan Capital Market and its effect to the Sri Lankan economy as a whole. The TFBR suggested a number of prudent releif measures. Click TFBR Report
We have granted number of relief measures to our stakeholders and continues to monitor the situation to take proactive measures to safeguard the interest of our stakeholders.
- Issued guidelines on adopting regulatory measures on monitoring credit exposure undertaken by Stockbrokers/dealers. Click for the directive
- Relief to public listed companies by granting an extension of time for complying with minimum Public Float requirements and for the submission of Annual Reports.- For further information www.cse.lk
- Granted a moratorium to the clients of all registered Margin Providers Click for the directive
- Granted a moratorium to the clients of Stock Brokers from the payment of interest on credit. Click for the directive
- Granted relief measures taking into consideration the constraints and administrative challenges faced by the licensed/registered entities in complying with certain regulatory requirements. Click for the directive
- The timeframe for submission of reports by licensed/registered entities was extended. Click for the directive
- A deferment of the SEC’s annual licensing/registration fees for the year 2020 was granted on the core-regulated activity of all licensed/registered entities by a period one year. Click for the directive
The SEC having taken into consideration the market conditions that could arise amid the pandemic amended the current methodology pertaining to Index Based Circuit Breakers by introducing a Three- Tiered Circuit Breaker structure to the S&P SL20 Index with a view to create a fair and equitable market. Click for the directive
The SEC is committed to provide a safe and healthy workplace for all its staff members. in order to achieve this objective while strictly adhering to Government’s COVID-19 regulation, the SEC launched a handbook titled” RULES & GUIDELINES THAT NEED TO BE ADHERED TO BY THE STAFF OF THE SEC TO PREVENT THE SPREAD OF COVID-19” in the beginning of May 2020.
The SEC has continued to provide uninterrupted services to its stakeholders and is fully committed to protecting the interest of investors while maintaining a fair & orderly market.