Colombo, June 7 (Xinhua-ANI): Sri Lanka's stock market regulator is considering tighter regulations to promote investment and improve performance, an official said here on Thursday.
Securities and Exchange Commission (SEC), the regulatory arm of the Colombo Stock Exchange (CSE), is studying new policies aimed at improving corporate governance, market liquidity and creating a better informed investor base, according to its Chairman Thilak Karunaratne.
"We are also considering the possibility of introducing a minimum free float to increase market liquidity," he told media.
Karunaratne's comments come after the release of the SEC Annual Report, which details that around 15 percent of complaints received last year were regarding insider dealing allegations while 58 percent were market manipulations.
In 2011 a total of 18 investigations were conducted by the SEC and at least 18 individuals were warned of their actions in connection to the CSE.
In an effort to improve the regulatory framework the SEC together with the World Bank is also working on amendments to the SEC Act.
The proposed changes include regulating demutualized stock exchanges, derivative exchanges, clearing corporations and fund managers.
The CSE has fallen on rough times since mid-2011 plummeting to the second worst performer in the world. (Xinhua-ANI)