The Cabinet of Ministers this week directed that the Bill to amend the Securities and Exchange Commission (SEC) Act be published in the Government Gazette and submitted to Parliament for approval.
The Cabinet in October approved the Bill and the Legal Draftsman has also received the clearance from the Attorney General. SEC Chairman Viraj Dayaratne PC earlier told the Daily FT that the SEC had refined the final draft, bringing greater clarity and removing ambiguity.
He said, overall, the new Bill will be a progressive piece of legislation aimed at ensuring robust regulation, as well as facilitating the development of the capital market.
The original SEC Act No. 36 of 1987 had seen three amendments previously, in 1991, 2003 and 2009. Capital market stakeholders have been calling for a new Act for several years to ensure that regulation and market development keeps pace with modern era dynamics.
The SEC is confident of an early passage for the new Act, which is among a host of fresh measures to revitalise the capital market, broaden both the local and foreign investor base, increase listings and improve efficiency via digitalisation.
Among key developments dependent on the new Act is the long-awaited demutualisation of the Colombo Stock Exchange (CSE).
Dayaratne said the focus of the newly-constituted commission members is to ensure healthy regulation for investor protection, risk mitigation and market development.