SEC Probes Abnormal Wealth Trust Debut Movements 📈

The Securities and Exchange Commission (SEC) of Sri Lanka has identified key parties behind the "abnormal" price movements during the Wealth Trust Securities Ltd debut on 7 January. Initial findings suggest the actions were deliberate and primarily involved retail investors. • Investigation Status: The SEC has questioned several individuals and reviewed records to uncover the full picture. Officials confirmed that those identified are mostly retail investors using internet trading platforms without consulting licensed investment advisers. • Market Safeguards: Following the debut chaos, the Colombo Stock Exchange (CSE) now prohibits market orders on a security's first trading day. While a few investors attempted to place sell orders at "excessive prices" (reportedly reaching Rs. 25,000 against a Rs. 7.00 IPO price) on 8 January, new restrictions prevented execution. • Regulatory Action: The SEC warned that any confirmation of market manipulation will result in strict action under the SEC Act. Despite the volatility, authorities noted that most investors acted responsibly. • Sector Context: As a primary dealer in government securities, the stability of Wealth Trust Securities is vital for investor confidence in the financial services sector and the broader capital market. _Summary based on initial investigative findings as of 12 January 2026._