Friday, November 9, 2012

SEC Chief welcomes 2013 Budget boost

Capital market stakeholder proposals incorporated; Presidential Task Force to spearhead Master Plan
Securities and Exchange Commission Chairman Dr. Nalaka Godahewa yesterday welcomed several capital market specific proposals in 2013 Budget, saying they will help create greater vibrancy.

“Budget 2013 has taken into consideration several proposals submitted by the capital market stakeholders and this is very encouraging. We hope the investing public, the private sector, and all market participants and intermediaries will take strength and benefit from the 2013 Budget and create a vibrant capital market,” Dr. Godahewa added.

 President Mahinda Rajapaksa said the Capital Market Development Master Plan prepared in consultation with all stakeholders would facilitate the development of diverse products in the market.                   

 “I propose to appoint a Presidential Task Force to implement this plan, by mobilising all stakeholders involved in the capital market,” he added.

 He also proposed the following:

 Offer a three-year half tax holiday for new companies that will be listed in the Colombo Stock Exchange before December 2013, and maintain a minimum of 20 per cent of its shares with the public.

 Exempt withholding tax on interest income earned from investing in bonds and debentures listed in the Colombo Stock Exchange.

 To popularise unit trusts among Sri Lankans working overseas and living abroad and small-time investors, allow direct investments in foreign currencies in unit trusts without having to channel through Securities Investment Account (SIA).

 Apply the 10 per cent tax applicable to unit trusts also to unit trust management companies in order to strengthen the management of unit trusts.

 Exempt transfer of shares for margin trading from Stamp Duty, to facilitate such market transactions.
 Permit broking firms to claim a lump sum depreciation for expenditure on IT infrastructure, branch networking, and such other capital items.

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