SEC strengthens Investigations Division, takes on offenders

The new chairman of the Securities and Exchange Commission [SEC] has successfully faced the challenge of capacity building at the institution and actually taken on certain offenders.

Ranel Wijesinha has managed to beef up the Investigations Division within six weeks of becoming the chairman. Having kept a relatively low profile, this is the first occasion since taking office that he has spoken to the media, on investigation matters.

“I have been intensely focused on building the inside before battling the outside, while focusing in parallel on capital market development,” he told the Business Times in an interview.

SEC in the past nearly four years has got a lot of flak for not complet- ing or re-starting investigations – especially against the stock market mafia. The worst manipulations of the stock market including pump and dump of stocks by high net worth investors were during 2010 to 2012 and then SEC Chairperson Indrani Sugathadasa resigned from her post under pressure in December 2011. Then Thilak Karunaratne was appointed by then President Mahinda Rajapaksa but less than a year later he was asked to step down by Mr. Rajapaksa. In 2015 when Mr. Karunaratne was reappointed, they were shaken up but nothing happened. Also the SEC had a capacity issue.

"Having been a Commissioner from 2015- early 2018, during the time of the immediate preceding Chairman, I frequently questioned at monthly commission meetings as to the reasons for the apparent delays in investigations and my concerns about the absence of outcomes, and having known the institution and many of its good people, for decades, I resurfaced my concerns.”

The investigations division’s head count which previously averaged three to six was expanded to 15. “Many experienced chartered accountants and lawyers were mainly transferred out of divisions such as the Supervision Division and the Corporate Affairs Division into the Investigations Division,” Mr. Wijesinha explained. “We have also begun a more substantive dialogue with the Attor ney General’s Department and had discussions on enhancing what I term ‘investigation and litigation strategy’.”

He had experienced a culture of suspicion between and among a few of the SEC people when he took office.