Govt. presents new Securities Exchange Bill

Published : 9:03 am  December 7, 2017 | No comments so far |  |  (186) reads | 

Replacing Securities and Exchange Commission Act of 1987


By Yohan Perera and Ajith Siriwardana   

Government yesterday presented to Parliament the Securities Exchange Bill under which a commission would be set up to regulate bond issues, issuing of shares, stocks, funds and units, replacing the prevailing Securities and Exchange Commission Act  of 1987. As per the Bill a Securities and Exchange Commission would be appointed to regulate the issue of securities. The Commission which will be appointed by the minister who is in charge of the subject will comprise a majority of six members from the private sector. These members should possess expert knowledge on the securities market. There will be four nominated members in the Commission which includes the Deputy Secretary to the Treasury, Deputy Governor of the Central Bank, a fellow member of Chartered Accountants of Sri Lanka and the Registrar General of Companies.   

A person shall be disqualified from being a member of the commission if he becomes an MP or a member of a provincial council or in a local authority, if he becomes a director , a partner or an employee of an entity licensed or registered by the commission, found guilty of serious misconduct in relation to duties or if convicted of an offence which involves moral turpitude.   

The commission will have a chairperson appointed by the subject Minister and a director general who will act as the chief executive officer of the commission.   The powers and duties of this commission include, advising the government on developing the securities market, giving directions to market institutions, market intermediaries and to the trading participants, granting licences to market institutions, clearing houses, issue directives to listed public and foreign companies. The commission will also have the power to prohibit and suspend any listing of any securities. It will also have the power to cancel the licence of a market institution a clearing house or any other type of trading participant.