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| Tuesday, 13 January 2004 |
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SEC to help develop Unit Trust Industry The Securities and Exchange Commission of Sri Lanka (SEC) has called for proposals from the Unit Trust Management Companies to draw up plans to further develop the Unit Trust Industry in Sri Lanka, Director General Securities and Exchange Commission of Sri Lanka Palitha Silva Gunawardene said. The SEC is currently holding discussions with Chairmen and the Chief Executive Officers of the Unit Trust Management Companies to ascertain ways and means of expanding the industry. The SEC is particularly concerned will the decrease in the number of unit holders and the resultant lack of widespread distribution geographically and among the rural investors. The Unit Trust was introduced to Sri Lanka in 1991 to act as a conduit for the local investors to access the Capital Market. Gunawardene said currently the majority of Unit holders are from Colombo and the suburbs, with spares distribution of Units in the outstation areas. One of the main concerns the SEC has is the insufficient distribution channels and efforts to market Unit Trust in the outstation areas. It noted that of the five Unit Trust Management Companies four are subsidiaries / associates of Banks and the potential synergies of using the Bank's presence, has not been fully realised to promote and market Units to potential investor in those areas, he said. The SEC has also identified the following specific areas among the issues to be addressed by the Management Companies to increase the Unit holder base. * Unit Trust Association with the assistance of the Management Companies should conduct an awareness program to popularise the Unit Trust Industry. This should inter alia include the conduct of seminars and road shows in selected areas where there appears to be potential for investment opportunities. * Introduction of innovative new products and close ended Unit Trusts to cater to a wider cross section of investors. |
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