The Securities and Exchange Commission (SEC) is to amend the SEC Act to create a conducive infrastructure to the capital market.
"Rulemaking is often required to remedy abusive practices and facilitate changing economic conditions", said Indrani Sugathadasa, Chairperson, Securities and Exchange Commission.
The SEC Act will be amended to incorporating the following:
To regulate demutualized exchanges, Provisions to effectively regulate a Central Counter Party/ Depositories, to introduce civil sanctions and administrative sanctions to deal with capital market offenders and the introduction of provisions that will provide for restitution for investors, to licence and regulate derivative exchanges including a Commodities Exchange, provisions incorporating legal duties on Auditors in respect of capital market offences and other relevant provisions that will enhance protection to investors.
Apart from that, introduction of the new Takeovers and Mergers Code, new market intermediary rules, guidelines to register auditors of listed companies will strengthen the functioning of the Capital Market in Sri Lanka, said Indrani Sugathadasa.