SEC ropes in CID and FIU to battle capital market scams

SEC SAYS AS INTEREST RATES IN BANKING SECTOR DECLINE, INVESTORS SEEKING HIGHER RETURNS ARE MIGRATING TO SHARE MARKET, INADVERTENTLY ATTRACTING FRAUDSTERS IN SEC RADAR ARE TWO MAJOR SCAMS CURRENTLY IN OPERATION: 'BLUE OCEAN SECURITIES LIMITED' AND 'GLADIUS SOUTH ASIA'

- By NISHEL FERNANDO

From left: SEC Chairman Prof. Hareendra Dissabandara briefs media regarding rogue market operators while SEC Deputy Director General Tushara Jayaratne looks on

(PIC BY KITHSRIRI DE MEL)

The Securities and Exchange Commission of Sri Lanka (SEC) has announced a strengthened collaborative mechanism with the Criminal Investigation Department (CID) and Financial Intelligence Unit (FIU) of the Central Bank to combat a rising wave of sophisticated financial scams targeting capital market investors.

SEC Chairman Prof. Hareendra Dissabandara revealed that as interest rates in the banking sector decline, the investors seeking higher returns are migrating to the share market, inadvertently attracting the fraudsters who are shifting their operations from the banking sector to the capital market.

During a media conference held in Colombo yesterday, the regulator disclosed the details of two major scams currently in operation: 'Blue Ocean Securities Limited' and 'Gladius South Asia'.

In a startling revelation regarding the audacity of these fraudsters, SEC Deputy Director General Tushara Jayaratne disclosed that the agents from 'Gladius' a scheme enticing the locals to invest in foreign stock markets had unknowingly cold-called the SEC officials to solicit investments.