By: Staff Writer
November 27, Colombo (LNW): The Securities and Exchange Commission of Sri Lanka (SEC) has issued a strong warning to investors about Blue Ocean Securities Ltd., highlighting the rising threat posed by unlicensed securities companies that exploit unsuspecting investors through deceptive operations.
According to the SEC, Blue Ocean Securities lacks legal authority to trade in securities in Sri Lanka and its Chief Analyst and assistant are unregistered investment advisors. International checks confirmed that the firm is not licensed by the UK Financial Conduct Authority (FCA), further underscoring the global reach of its fraudulent activity.
Fake securities companies like Blue Ocean typically use a sophisticated modus operandi designed to appear credible. They lure investors with promises of unusually high returns, often claiming expertise in high-demand stocks or niche financial products.
These entities create professional-looking websites, reports, and social media profiles, sometimes even claiming fictitious partnerships with international financial institutions. WhatsApp groups, Telegram channels, and other online communication platforms are often used to directly solicit funds and provide “market tips,” giving the illusion of insider knowledge.
Experts say that such firms target both retail and institutional investors, exploiting gaps in public awareness. The schemes often rely on psychological pressure, including urgent calls to invest immediately, fear of missing out, or guarantees of rapid profits.
Once funds are deposited, investors frequently find no transparency, no trading activity, and no access to their money, highlighting the high-risk nature of engaging with unlicensed operators.
The SEC is actively coordinating with law enforcement authorities to investigate Blue Ocean Securities and prevent further victimization. Investors are urged not to deposit money, share personal financial information, or join any communication channels associated with the company. Only licenced stockbrokers should be used for securities transactions, and a CDS account must be opened before trading.
Analysts warn that the rise of such fraudulent firms threatens the integrity of Sri Lanka’s capital markets, undermining public trust and potentially deterring genuine investors. Heightened investor vigilance, regulatory enforcement, and broad public awareness campaigns are crucial to mitigating these risks.
The SEC encourages investors and media outlets to share scam alerts widely, helping to expose unlicensed operators and protect the financial ecosystem.
