Opinion

Unique investment opportunity approved by SEC

It was laughable to receive a circular letter from the subsidiary of a bankrupt quoted company, titled " Unique investment opportunity in a falling interest regime" and dated 16/9/2003 . This particular quoted company had its shares trading at less than a rupee. Recently the company defaulted on the rescheduled payments to the debenture holders. The regulatory bodies are aware of all these. The directors involved with this company should be made to rest for sometime inside a jail. This company through its subsidiary is now offering an investment opportunity to earn a high return. Disgustingly the circular says they are approved and supervised by the Securities and Exchange Commission of Sri Lanka.

Not a day passes now without a letter from a pensioner being published regarding their plight on reduction of interest rates. Many are capitalising on this and coaxing many gullible pensioners and others to divert their savings to the share market. Why are persons with proven track records as failures in business allowed to collect funds from the public with the approval of Securities and Exchange Commission of Sri Lanka? In this overheated stock market it seems that the interest of regulatory bodies is to see that the share indices keep climbing higherand higher. If the investors are swindled once again will the SEC make good the losses of the investors. The CEO of Frontier Research should be commended for his courage to compare our present stock market to a casino at a seminar of the Sri Lanka Economic Association.
Sarath Fernando.
Nugegoda.


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