Sri Lanka SEC action has escalated after the regulator confirmed a criminal investigation into Blue Ocean Securities Ltd for allegedly soliciting public funds for stock market investments without proper authorization or licensing.
Sri Lanka SEC warns public after CID opens Blue Ocean investigation
Sri Lanka SEC enforcement activity intensified after the Securities and Exchange Commission of Sri Lanka announced that a criminal probe has been initiated against Blue Ocean Securities Ltd, an entity accused of canvassing funds from the public while claiming to invest in the Colombo Stock Exchange.
The regulator confirmed that it has lodged a formal complaint with the Criminal Investigation Department, citing concerns that the company is operating as an unlicensed investment entity. The Colombo Stock Exchange has also submitted a separate complaint to the CID, reinforcing regulatory concerns over the firm’s activities.
According to the SEC, the CID has already commenced investigations and has been provided with all relevant complaints and banking information linked to Blue Ocean Securities. This includes details of accounts allegedly used to collect funds from members of the public under the pretext of equity market investments.
Sri Lanka SEC officials stated that the company is not licensed or registered under the securities laws governing capital market operations. Under Sri Lankan regulations, any entity offering investment services, portfolio management, or securities-related advice must be approved and supervised by the SEC to ensure investor protection and market integrity.
The regulator further disclosed that individuals presenting themselves as senior representatives of the firm are also not authorized. An individual using the name Rohan Dias, who claims to be the company’s Chief Analyst, and another individual identified as Natasha Perera, claiming to be his assistant, are not licensed by the SEC to engage in regulated investment activities.
Sri Lanka SEC warnings emphasized that such misrepresentation poses serious risks to the investing public. Unlicensed operators are not subject to regulatory oversight, capital adequacy requirements, or conduct rules, leaving investors exposed to potential fraud and financial loss.
The regulator has urged the public to refrain from depositing funds into any bank accounts provided by Blue Ocean Securities or its representatives. It also advised investors to exercise heightened caution when approached with investment offers that promise access to stock market returns without verifiable regulatory approval.
Sri Lanka SEC advisories have become more frequent amid a rise in unauthorized investment schemes promoted through social media and digital platforms. Regulators note that such entities often exploit investor interest in equity markets by using official-sounding titles, fabricated credentials, and references to well-known institutions to gain credibility.
By initiating a criminal investigation, authorities aim to prevent further public exposure and ensure accountability under existing securities and criminal laws. If proven, violations could result in penalties, prosecution, and restrictions on future market participation for those involved.
The SEC reiterated that investors should verify whether an entity or individual is licensed before engaging in any securities-related transaction. The regulator maintains a public register of approved market participants and encourages individuals to consult official sources when evaluating investment opportunities.
Sri Lanka SEC action in this case also underscores broader efforts to strengthen market discipline and protect confidence in the capital market. Regulators have stressed that unchecked unauthorized activity can undermine trust in the financial system and discourage legitimate investment.
As investigations continue, the SEC stated that it will cooperate fully with law enforcement authorities and take additional regulatory measures if necessary. Further updates are expected once the CID concludes preliminary inquiries and determines the next steps in the case.