SEC agrees to some concessions for brokers

By Duruthu Edirimuni Chandrasekera

The Securities and Exchange Commission (SEC) met a group of stockbrokers on Wednesday and agreed to some of their eight demands and was considering others, SEC officials and brokers said.

They said that amongst the demands was the removal of the price band and an adjustment to the credit concessions, while the SEC agreed to consider relaxing regulations on warrants and private placements.

The introduction of short selling and appointing foreign agents by stockbrokers to canvass business was agreed to by the regulator. The sources added that it was a cordial meeting and the two parties agreed to meet at least once a month.

"This was the first time that we met the new chairman at SEC. It was a good meeting," Sriyan Gurusinghe, President Colombo Stock Brokers Association. (CSBA) told the Business Times. He said that the Commission gave positive responses to all eight points that they presented. He added that what transpired at this meeting will be communicated to the CSBA membership this week.

He said that prior to the meeting with the SEC, the CSBA had a discussion on who should represent the CSBA and what points should be discussed with the SEC. "More than 20 CEOs were present at the CSBA meeting and it was a unanimous decision (on the representatives)," Mr. Gurusinghe added.

 SEC sources said that they only wanted some five representatives at the meeting. "We felt it will be a more productive meeting, which it was," an SEC source told the Business Times.

On Thursday, with notable price appreciations in several counters- a day after the country's regulator agreed to ease some of the rules seen stifling trading, Colombo shares recovered sharply.

source - www.sundaytimes.lk