Oct 23, 2011 (LBO) – The head of Sri Lanka’s Securities and Exchange Commission said she had not received instructions to sack its director general, following strong speculation that he would be dismissed for probing securities fraud. Asked by reporters whether the SEC would continue its investigations, Sugathadasa said before a formal investigation is started, people are called and questioned when the bourse’s surveillance system detects unusual price spikes.
“Then we question them and if we think it needs to be investigated then that’s the last stage,” she said.
“It is put to the Commission, then if the Commission says it needs to be investigated, then we investigate.”
Sugathadasa speaking at the opening of the ‘investor day’s said to make the Colombo Stock Exchange and attractive place it must be a open, clean, fair and transparent market.
“Only and effective regulatory framework will make the market fair and transparent.”
She said during the past month about 10 to 15 stock went up sharply, some by about 300 percent.
“Then, for whatever reason they suddenly fell,” she said. We should find why this happens? Small investors should be aware why they go up and why fall down suddenly.”
“Not to my know