A well regulated capital market, a sine qua non for investment
It is an encouraging sign that the new capital market development plan is taking off the ground. Without the usual delay associated with government institutions some key officers have already been appointed to carry out the new development plan.
The government has also taken a correct decision in getting the much needed expertise to the securities market by appointing respected financial industry professional Ravi Abeysuriya to the board of the Securities and Exchange Commission(SEC). We can take full advantage of the current bullishness in the market and the positive outlook associated with it and take the market to new heights only by taking timely decisions. Expertise and new ideas will definitely come handy in this exercise.
The SEC has also taken the timely decision of setting up a financial services academy with the collaboration of the Central Bank. The new academy is to be declared open tomorrow by the Governor of the Central Bank at its Staff Training College premises at Rajagiriya.
We earnestly hope that these efforts will bear fruits by successful implementation of the capital market development programme in its original form. We hope so because we see that the new plan contains some novel ideas which, if implemented, could transform the relatively small capital market into a sizable one at least in regional terms.
In this regard another important aspect is the proper regulation of the market. Going by some of the recent developments in the market, anybody will see that there is a strong need for enhancing and strengthening the regulatory aspects. As such proper enforcing of the rules governing the market should take an important place in any effort to develop the market.
No man would want to invest in a place where his money is exposed to any kind of threat, fraud or malpractice. That is why all markets including securities markets, financial markets etc have to be regulated. Regulation ensures that all players in a market operate according to a set of well defined rules.
All those that are violating the rules of the market should be equally dealt with irrespective of their standing in the society or political affiliations. A well regulated market is an essential thing if we are to build confidence of the people in the market and to attract more and more investments |
