Thursday, December 30, 2010

Stockbrokers to extend credit

The Securities and Exchange Commission (SEC) has encouraged stockbrokers to extend credit facilities to their clients through margin providers registered with the Securities and Exchange Commission of Sri Lanka.

Securities and Exchange Commission of Sri Lanka Chairperson Indrani Sugathadasa together with other members and officials of the Commission and CSE Chairman Nihal Fonseka met members of the stockbroking industry on Wednesday and informed the stockbrokers that the directive that was issued earlier by the Commission on extending credit to any investor beyond T+3 days, was not a measure taken by the Commission to discourage investors, but was a critical step taken towards managing the inherent systemic risks in the capital market.

The Commission has published a list of the Margin Providers registered with the Securities and Exchange Commission of Sri Lanka in the newspapers for the information of the public and has also made the list of registered Margin Providers available on the website of the Securities and Exchange Commission of Sri Lanka (www.sec.gov.lk).

The Commission having taken note of the concerns of the stockbroking industry also permitted stockbrokers to grant a brief grace period to buyers who are in default of settlement by T+3. Stockbrokers will be granted an additional two days to force-sell securities of buyers which are in default of settlement by T+3 in order to recover the monies owing to them by such defaulting client.

source - www.dailynews.lk

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