*Commission meets today to deliberate on price bands, broker credit and DG post
By Ravi Ladduwahetty
The Commission Members of the country’s capital markets watchdog, the Securities and Exchange Commission, are expected to meet today to deliberate on the price bands and credit restrictions plaguing the exchange and also to appoint the next Director General, with three names being shortlisted for the post.
The three-pronged race is between the SEC’s incumbent Director Training, Dr. D. B. P. H. Dissa Bandara, Attorney General’s Department’s former Senior State Counsellor Harsha Fernando and top Investment Banker Nishan Sumanadheera, sources told The Island Financial Review.
Analysts said the Colombo Stock Exchange continues to slump as investors eagerly await a policy directive from the regulator, but until it gets its house in order, this may not happen.
The once-best performing stock exchange in the world declined by 8 percent in 2011. Year-to-date, the exchange has slumped 3.54 percent by the end of day’s trading yesterday (Jan. 10).
Last year, the government removed Malik Cader from the Director General’s post when influential investors complained to the President about the SEC’s tough stance on market manipulation. Soon after, Chairperson of the SEC Ms. Indrani Sugathadasa resigned saying it was a ‘matter of conscience’.
Tilak Karunaratne was appointed Chairman of the SEC in December. Since then the market has been in anticipation as to whether or not the SEC would continue to implement the tough stance adopted by Ms. Sugathadasa, Cader et al.
"Until the SEC gets its act together and finalises key appointments, a policy direction may not be forthcoming anytime soon," a market analyst said.
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