SEC Act of 2021 comes into force

Speaker Mahinda Yapa Abeywardena today endorsed his certificate on the Securities and Exchange Commission of Sri Lanka Bill in parliament.

Accordingly, the new Securities and Exchange Commission (SEC) Act No. 19 of 2021 comes into force today.

The bill for the new act was gazetted on 28 June this year and was presented on 9 July 2012 by the Minister of Finance.

The SEC Act No. 19 of 2021 replaces the law that was formulated in 1987. The objective of the new law is to pave the way to regulate the Colombo bourse with global best practices.

The SEC Act of 2021 increases the powers vested by the SEC as the capital market regulator, and auditors.

Some of the features of the new Act include, but are not limited to, higher fines, longer terms of imprisonment, strong action against market misconduct, market manipulation, insider trading, and whistleblower protection.