Entrepreneurship

SEC Sounds Alarm Over Unauthorized Investment Tips on Social Media

The Securities and Exchange Commission of Sri Lanka (SEC) has cautioned social media users against offering or following unlicensed investment recommendations, stressing that such activity is illegal and subject to severe penalties.

In a message shared on X, the SEC warned that only Registered Investment Advisors or licensed bodies are permitted to issue investment-related guidance. Individuals who ignore this requirement and breach Part 5 of the SEC Act risk prosecution before the High Court, where penalties include a fine of at least Rs. 10 million, imprisonment of up to ten years, or both.

The SEC said the crackdown is part of its ongoing effort to protect the interests of investors.