Former Director General of the SEC and now Precedent Partner of Nithya Partners Arittha Wickramanayake yesterday declared that the country’s stock market “by and large” was not over regulated but emphasised effective regulation/enforcement was key.
He said that though implemented in good faith the price band and stopping broker credit to clients may have resulted in over regulation and shift from disclosure based regulator to a merit-based exercise.
“Active trading of penny stocks and price volatility are worrisome but direct or indirect intervention by the regulator is not the answer. Greed and foolishness of investors cannot be regulated by the SEC,” opined
Arittha adding that instead the regulator must create greater investor awareness and enforce existing laws to deal with manipulations. He also added: “The regulator shouldn’t make decisions on credit extended to a client on the part of a broker."
source - www.ft.lk
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