By Mario Andree
Securities and Exchange Commission (SEC), Chairman, Ms. Indrani Sugathadasa told a press conference yesterday that the price band would be removed affective from the20th this month and defended a new price formula that would capture volatile stocks.
The SEC has been praised by some for imposing the 10 percent price, although it was a bit too late while others criticised the move, saying it was detrimental to Sri Lanka’s image as an emerging market.
Ms. Sugathadasa said the price band helped stabilise the market and a new formula would be introduced to capture unusual movement in stocks for which a 15-market-day price band would be capped on such stocks.
"The price band will be removed because it is no longer needed as the market was now safer. We have identified the parties involved in creating the situation that led up to the price band and investigations are ongoing. The new formula we have developed would capture unusual movements of this nature in future," Ms. Sugathadasa said.
When asked whether investors would be stepping into minefield as a result of the new formula, SEC, Deputy Director General, Malik Cader said, "By imposing this mechanism we would be helping investors come out from a minefield, rather than step in to one."
source - www.island.lk
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