Securities and Exchange Commission (SEC)

The SEC was established by the Securities council Act No. 36 of 1987 to regulate the securities market in Sri Lanka, grant licenses to stock exchanges, stock brokers and stock dealers who engage in the business of trading in securities. Subsequently the Act was amended by the Securities Council (Amendment) Act No 26 of 1991 vesting the SEC with the power to license and regulate Unit Trusts. The development and expansion in the Capital Market resulted in an increase of market intermediaries performing securities related functions, thus leading to gaps in the regulatory framework. Taking this into consideration underwriters, margin providers, investment managers, credit rating agencies and clearing /depository houses were brought under the purview of the SEC with the Securities and Exchange Commission (Amendment) Act No. 18 of 2003. Since its creation, the SEC’s ultimate responsibility has been to protect investors, and to maintain a fair, efficient and orderly market. Apart from discharging its regulatory functions it is also obliged to encourage and promote the development of the securities market. In the year under review the Commission in order to fulfill its responsibilities pertaining to effective market supervision, development, regulation and enforcement embarked on several strategic initiatives.  

Capital Market Information Centre (CMIC)

With the view to broad-base the investor community across the geographical regions of Sri Lanka, SEC has embarked on an intensive investor education and public awareness campaign. In pursuance of this, we have resolved to establish Capital Market Information Centers across of Sri Lanka, using national universities as the conduit of providing access to information pertaining to capital markets.

CMIC is envisaged to be a learning environment through which market information would be disseminated to students, staff and faculty members seeking to further their understanding of the capital market for research and academic purposes as well as to upgrade their knowledge in investing. Under phase 2 of the project, it is also expected to be made open to the public. CMIC will offer information in both electronic and printed media.