SEC cautions public against depositing funds with Samagi Capital

The Securities and Exchange Commission of Sri Lanka (SEC) yesterday warned investors against dealing with Samagi Capital (Private) Limited, stating that the company is not licensed to operate as a stockbroker or stock dealer and that a purported broker-dealer licence being circulated on social media is fraudulent.

In a public notice issued, the market regulator said a certificate claiming to grant a Broker Dealer Licence to Samagi Capital had not been issued by the SEC and was being used to mislead the public.

“The certificate is fake and misleading,” the SEC said, urging investors not to deposit funds into accounts associated with the company for the purpose of trading on the Colombo Stock Exchange (CSE).

The SEC has been carrying out continued efforts by to strengthen investor protection and safeguard confidence in Sri Lanka’s capital market as retail investor participation grows.

The SEC advised investors to verify the status of intermediaries through the official websites of both the SEC and the CSE before committing funds. It also reminded the public to conduct transactions only through stockbroker firms licensed by the regulator.

Investor protection remains a key regulatory priority, the SEC said, calling on the public to exercise due diligence and independently verify the credentials of market participants before making investment decisions.

The regulator did not indicate whether further enforcement action or investigations were underway in relation to the circulation of the fraudulent certificate.