SEC split?

Monday, 13 August 2012 00:26 - - {{hitsCtrl.values.hits}}

The proposal by SEC Chairman Tilak Karunaratne at last week’s Commissioners meeting to make Acting Director General Prof. Hareendra Dissabandara permanent had faced a roadblock.

The Daily FT learns that several Commissioners have objected to the Chairman’s proposal, saying Dissabandara isn’t fully competent to function in a permanent role. If he was to be made permanent prior approval from Ministry of Finance must be obtained, some of the dissenting Commissioners had emphasised.

There had been differences opinion over the duration of his tenure if considered for permanency as well. Chairman had proposed two years initially.

Failure to secure unanimous approval for his proposal is being described by some as a setback for Chairman Karunaratne, whose role has come for praise as well as criticism by different stakeholders in capital market with regard to regulatory aspect. Insiders claimed Karunaratne was disappointed over the lack of consensus among Commissioners on the confirmation of Acting DG.

Largely an academic, Dissabandara’s original selection as Acting DG also stirred some debate within the Commission, with at least one Commissioner at the time of selection opposing in writing as the candidate was holding two permanent positions in the public sector.

Prior to being appointed as Acting DG, Dissabandara was Director – Capital Market Education and Training and Lecturer/Professor at SEC, a position held since 2008, whilst he also functions as Professor in Finance, Department of Finance, Faculty of Management Studies and Commerce, University of Sri Jayewardenepura since 2009. He also functions as a lecturer/professor at University of Colombo and Rajarata University.

Some capital market analysts viewed the Acting DG post as invalid since the SEC Act only refers to DG and in his/her absence an Officer in Charge. Dissabandara was appointed Acting DG (he was an applicant too) in April this year whilst the search for a new DG didnt elicit the desired response.