April 11, 2008 (LBO) – A Sri Lankan supreme court judge has proposed amending regulations on stock market offences to cover markets regulators as well as all company shareholders. Supreme court judge Saleem Marsoof said a serious deficiency in the Securities and Exchange Commission (SEC) Act is that it does not provide against the use of price sensitive information by SEC officials gathered in the course of their duties.
The SEC Act also does not regard all shareholders as insiders in the offence of insider dealing, Marsoof told a seminar on stock market offences organised by the SEC.
The SEC Act contains provisions which expose public servants or former public servants to liability for insider dealing, he said.
“This provision does not extend to members, officers and servants of the SEC as they are simply not ‘public servants’,” Marsoof said in a paper prepared for the seminar.
“A serious deficiency in the SEC Act is the glaring omission to provide against the use of price sensitive information gathered in the course of the discharge of their duties by (SEC officials).”
The Takeover Code provisions will cover such officials but are restricted to the off