Wednesday, November 14, 2012

Stock Brokers Association hails 2013 Budget as ‘development-oriented’

The Colombo Stock Brokers Association (CSBA) has hailed the 2013 Budget presented last week by President and Finance Minister Mahinda Rajapaksa as ‘development oriented.’

Representing 23 stock broking firms, the CSBA said it wishes to thank President Mahinda Rajapaksa on the unprecedented policy initiatives proposed to develop the capital market as the 2013 National Budget.

“We, as one of the major stakeholders of the capital market of Sri Lanka, are elated that the important and urgent need to develop the capital market has been duly recognised by the President as the Finance Minister. The key proposals announced in the Budget impacting the capital market demonstrate the desire of the Government to see a vibrant capital market in the immediate future. We are also grateful to Dr. P.B. Jayasundera, the Secretary to the Treasury, for giving due considerations to the urgent needs of the capital market when formulating the Budget proposals for 2013,” the CSBA said in a statement. It said introducing a three-year 50% tax holiday for new companies to be listed at the CSE with a public float of at least 20% on or after 1 April 2013, exempting stamp duty for the transfer of shares to and from margin trading account effective from 1 January 2013 are some of the measures that will translate into improved liquidity at the Colombo Bourse.

 Permitting lump sum depreciation up to 100% for the stock broking companies for IT infrastructure development and branch office establishment with effect from 1 April 2013 would no doubt help the market intermediaries to evolve into full fledged brokerage houses on par with their peers in the international arena.

 Proposals impacting the debt market and the unit trust industry are also very encouraging.

“CSBA is extremely happy that the President has proposed to appoint a Presidential Task Force to implement a Capital Market Development Master Plan. We see this as the most important proposal impacting positively on the capital market. Therefore we thank the President for the long-term vision to create and nurture a capital market that would contribute towards nation building, “CSBA said.

“We also take this opportunity to thank the SEC Chairman for submitting market positive proposals during the Budget preparation stage while supporting the CSBA’s proposals and following a consultative approach since his appointment,” it added.

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