The Securities and Exchange Commission of Sri Lanka (SEC) has issued a stark warning to investors regarding the operations of Blue Ocean Securities Ltd., highlighting a growing trend of fraudulent securities companies that target unsuspecting individuals with sophisticated, yet illicit, schemes. According to the SEC, Blue Ocean Securities is not licensed to trade in securities in Sri Lanka and has no legal authority to act on behalf of investors.
Investigations revealed that the company’s Chief Analyst and assistant are unregistered investment advisors, raising further red flags. International verification also confirmed that Blue Ocean Securities Ltd. is not authorised or regulated by the UK Financial Conduct Authority (FCA), underscoring the global dimension of its deceptive operations.
The modus operandi of such fake securities firms typically involves aggressive solicitation through social media channels, WhatsApp groups, and other online platforms, luring investors with promises of high returns. They often create the appearance of legitimacy by mimicking the branding and websites of established financial institutions, sometimes even claiming fictitious international affiliations to gain credibility.
Regulators warn that investors who engage with these entities risk losing their capital, as there is no regulatory oversight or investor protection mechanism. The SEC is actively coordinating with law enforcement authorities to investigate the company’s operations and prevent further victimization.
The SEC has advised the public to exercise extreme caution: do not deposit money, share personal banking information, or join online groups associated with unlicensed firms. Investors are encouraged to only transact with licenced stockbrokers, ensure they have a CDS account, and verify credentials through official channels such as the SEC website or the Colombo Stock Exchange.
Analysts warn that the rise of such fake securities companies represents a significant threat to financial market integrity, eroding public trust in the capital markets. They emphasize that heightened investor awareness, due diligence, and regulatory vigilance are key to combating this growing menace. By sharing scam alerts widely, investors and media outlets can help reduce exposure to fraudulent schemes and protect the integrity of Sri Lanka’s securities sector.
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