Sun, 05 Feb 2023 Today's Paper

Good governance activist wants SEC to regulate bond market

By

21 July 2016 09:47 am - 0     - {{hitsCtrl.values.hits}}

A A A

In an open letter to the new Central Bank Governor Dr. Indrajit Coomaraswamy, good governance activist Chandra Jayaratne called for the heavily criticized government securities auction process to be regulated by the Securities and Exchange Commission (SEC). “It is urged that the Monetary Board resolves to assign the role and responsibility for regulatory oversight over government bond issues and the related secondary market transactions to the Securities and Exchange Commission, at the earliest opportunity,” he said.

He noted that the SEC— which regulates the stock market and corporate securities—had corresponded saying that only a minor adjustment needs to be made to the SEC Act to allow the capital markets regulator to undertake this expanded responsibility. A new SEC Act is currently being hammered out to allow the regulator to bring civil charges against infractions, to which the amendments to regulate government securities could also be added. Jayaratne noted that even though the Central Bank has professionals and infrastructure required for such regulation, an independent regulator is required due to the recent bond scandals showing the Central Bank’s conflict of interest.

The Central Bank suffers from definite conflicts of interest, due its role in being the primary issuer and manager of the government bond issues (and) being the effective manger and portfolio investor of the largest securities market player in Sri Lanka – the Employees’ Provident Fund,” he said. Jayaratne said that it is commonly believed that the secondary market information data set maintained by the Central Bank does not even track the basic market prices at which the securities trade, which shows an inadequate and incomplete availability of data required for regulation. He stressed that having an independent governance framework for the securities market is an investor right.

“I trust that you and the Monetary Board will immediately begin negotiation with the Securities and Exchange Commission and the government, for the formal transfer of the oversight responsibility over government bond issues and associated secondary market dealings, to the Securities and Exchange Commission,” he said.


Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Sending Money,Online Books, Delivery Service, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop Sri Lanka

  Comments - 0

Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Sending Money,Online Books, Delivery Service, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop Sri Lanka

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.

Reply To:

Name - Reply Comment




Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Sending Money,Online Books, Delivery Service, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop Sri Lanka

Pain and punishment

Should we spare the rod and spoil the child? Does it really happen? Children

Health System in the emergency room

Sandya Kumari from Kotahena has been experiencing chest pains since 2015 and

Canada’s targeted sanctioning of Gota and Mahinda

History was made last week when two former executive presidents of Sri Lanka

SC judgement on Easter attack: Court rules negligence stood in the way of avoiding most heinous crime

“On the ill-fated day of 21st of April 2019, this island home was awoken ru