Capital market regulator, the Securities and Exchange Commission (SEC) will revive the investigations against the alleged capital market offenders involved in pumping and dumping of shares, leaving thousands of innocent retail investors destitute during 2010 and 2011, the re-appointed Chairman, Thilak Karunaratne said.
“We are reviewing some of these cases again and trying to do justice to those who have got played out,” Karunaratne said addressing the Sri Lanka Legal Summit 2015, yesterday.
He said the new SEC Act will have to be redrafted with certain amendments to adequately enhance the regulator’s power in curbing fraudulent acts.
However, he said at least 18 months will take for the new draft to become legislation.
Some of the investor protections contemplated by the draft will prevent serious market misconduct just being settled with a fine; disallow market offenders to serve on boards of the Public Limited Companies (PLCs) etc.