SEC imposes restrictions on Entrust Capital Markets activities

May 09, 2016 (LBO) – Sri Lanka’s securities regulator has imposed several restrictions on Entrust Capital Markets (Pvt) Ltd (ECMPL) following regulatory concerns on the activities of the broker firm. The Securities and Exchange Commission in a letter has directed the firm that client funds are not withdrawn except with the prior written approval of the Commission. “In seeking such approval ECMPL shall set out a written account of the bases relied on in including where relevant confirmation of the Client’s instructions, which shall be countersigned by its Chief Executive Officer,” the letter said. “These directives shall become operative on receipt of this communication by ECMPL, and shall be effective until further notice.” The Commission has also issued four directives to the firm. 1. to refrain from accepting new clients; 2. to refrain from carrying out purchases and sales on behalf of Clients; 3. to facilitate the prompt transfer of securities portfolios of existing clients to other stockbroker/s in conformity with requests by clients; and 4. to apprise all clients in writing the specific restrictions imposed in paragraph 2 & 3 above.