The Colombo stock market is safe as it has the necessary regulations in place.
The recent breakdown of the Bangladesh stock market will not have any impact on the Colombo stock market.
“We have arrested the situation before hand and taken the necessary precautions,” Securities and Exchange Commission Sri Lanka Director-General Malik Cader told Daily News Business.
“The stock market activities will continue unaffected and we could expect vibrant performance same as at present level,” he said.
“We have the required regulatory framework regarding the Exchange Traded Fund (ETF) and with the relevant gazette notification this facility is expected to function within two months,” he said.
The country’s ETF will be in gold as it is in other countries and the fund manager will underline gold units which can be traded in the exchange.
This is the most safest place for any one to trade gold and could benefit from world market price increases. ETFs are funds that is similar to a close ended unit trust.
However the difference of this fund is that it also can been an open ended fund as well.
An additional feature is that the ETF could have precious metal which has benchmark valuation such as gold to be traded as an underline asset and units to be issued to investors.
These units will be traded as Gold ETF on the CSE.
source - www.dailynews.lk
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