SEC warns investors that Samagi Capital is not licensed for stockbroking or trading, calling a circulating broker certificate fraudulent.
SEC has warned Sri Lankan investors to be extremely cautious after confirming that “Samagi Capital (Private) Limited” is not licensed to conduct stockbroking or stock trading activities in the country.
The Securities and Exchange Commission of Sri Lanka issued a statement emphasizing that the company has not been authorized to carry out transactions connected to the Colombo Stock Exchange.
The Commission further stated that a certificate currently circulating on social media, which claims that Samagi Capital has been issued a Broker Dealer License, is completely fraudulent and was not issued by the SEC.
The warning comes amid concerns that members of the public may be misled into depositing money with the company or associated accounts under the belief that they are investing through a licensed market participant.
The SEC has urged investors and the general public not to deposit funds with “Samagi Capital (Private) Limited” or any bank accounts linked to it for the purpose of trading on the Colombo Stock Exchange.
The Commission emphasized that investors must carry out proper due diligence before making any investment decision in order to protect their savings and personal wealth.
It advised that all stock market transactions should be conducted only through duly licensed stockbroker companies regulated by the SEC.
The SEC also reminded the public that the licensing status of any institution should always be verified through the official websites of the Securities and Exchange Commission of Sri Lanka at www.sec.gov.lk or the Colombo Stock Exchange at www.cse.lk.
Reaffirming that investor protection remains its paramount responsibility, the Commission advised the public not to fall victim to fraudulent financial schemes promoted through social media campaigns.
