Tough regulator will ensure better governance: stockbroker

27 January 2015 04:23 am - 0 - {{hitsCtrl.values.hits}}

A A A

A local stockbroking firm with a foreign partner said in a report that the appointment of Thilak Karunaratne as the new Chairman of the Securities and Exchange Commission (SEC) will be beneficial for the country’s capital market in the longer run.Stock brokerage Bartleet Religare Securities (Pvt.) Ltd (BRS), a joint venture between Sri Lanka’s Bartleet group and India’s Religare Capital, said the return of Karunaratne, who is generally perceived a tough regulator, is likely to ensure better governance and transparency at the Colombo Stock Exchange (CSE).

“The regulator SEC is getting the tough enforcer Thilak Karunaratne back in the saddle as the new head. We believe this will be a move towards better governance and transparency in the CSE,” BRS said.Karunaratne was first appointed as the SEC Chairman in December 2011, when the then Presidential Secretary’s spouse Indrani Sugathadasa resigned from the post to ‘uphold her principles’.

However, he was asked to resign by former President Mahinda Rajapaksa, who was also the then Finance Minister, just nine months into his Chairmanship, for supposedly antagonizing some high-net-worth investors and influential stockbrokers.When Karunaratne resigned, 17 investigations into market malpractice were on-going. His successor Dr. Nalaka Godahewa later said all or most of those investigations had been concluded.

The announcement of Karunaratne’s return sent shockwaves among some capital market stakeholders due to his reputation for tirelessly going after market malpractices, at times even at the risk of upsetting the market sentiment.

However, BRS advised investors not to worry. “The market will take some teething pains in the short run, particularly with the retailers reacting to the changes, but over the long run we believe the CSE will be a more level playing field for investors,” it said.In an earlier interview with Mirror Business, Karunaratne said his first priority would be to stabilize the market but that he would reinvestigate those cases following careful examination of what transpired in the market during his absence. Karunaratne is expected to assume duties at the SEC in a couple of days.

Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

Comments - 0

Add comment
Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Tough regulator will ensure better governance: stockbroker

Comments - 0

Add comment

RECOMMENDED

‘Spike in blast fishing’ poses renewed threats to Sri Lanka’s marine ecosystems

UDA owned land in Thalawathugoda; UDA Minister Prasanna Ranatunga under the spotlight for forceful occupation of reserved land

Loss-making SMIB faces political pressure in recovering loans

Baltimore Bridge Collapse: MV Dali, SL authorities anchored in mystery?

Has Sri Lanka become a potential hub for the illegal wildlife trade?

Spotlight on Moragahakanda Development Project Moragolla villagers lose livelihoods and down to one meal a day

Ambitious Sri Lankan jobseekers ‘trafficked into Ukraine war zones’

Most Viewed in News

Complaint lodged over Piumi Hansamali's possession of Gota’s Range Rover

Former MP Palitha Thewarapperuma dies from electrocution

SL on alert on possible genocide allegations by Canada

Street food vendor arrested for verbally harassing foreigner

Sri Lankan among NASA’s new crew for next simulated Mars journey

Two racing drivers arrested over Fox Hill tragedy

MIRROR CRICKET

TODAY'S HEADLINES