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SEC initiates Indian study tour for stockbrokers :
Lanka to enter Derivatives Market with Indian, Thai collaboration
Ravi Ladduwahetty
The Securities and Exchange Commission will introduce derivatives
into the Sri Lankan market with Indian and Thai collaboration, aimed at
mitigating investor risk.
“We are not reinventing the wheel but we will share and study the
best practices from both India and Thailand who have assured us of their
best support and interest in sharing their experience and also take part
in Sri Lankan derivatives market” , Securities and Exchange Commission
Director General Channa De Silva told Daily News Business.
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The Inauguration Ceremony of the Bank of Ceylon Debenture Issue
was recently held at the Bank’s Head Office. Here Chairman of
General Sales (Pvt) Ltd. Chandra Senanayake receiving the
debenture certificate from Chairman of the BOC, Dr. Gamini
Wickramasinghe. |
India and Thailand have agreed to participate in equity for the
setting up of what is named as the Central Clearing Corporation which is
mandatory to take away any settlement and payment failure risk, he said.
The SEC Director General also said the proposed Central Clearing
Corporation has to be capitalised heavily in order to provide assurance
for large trades. Therefore the SEC has also informed the Colombo Stock
Exchange that it will have to initiate to establish the proposed Central
Clearing Corporation, he said.
De Silva also stressed that there are currently a large number of
countries which will be interested in investment in the CCC in addition
to Thailand and the Sri Lankan banking institutions have also pledged
support for this exercise expressing keen enthusiasm to be a part of
this exercise which will take away the entire element of settlement
failure, he said.
In this context, the Securities Exchange Commission has invited the
members of the Colombo Stock Brokers Association on a study tour of
India which will enlighten the local markets on how the highly
successful Indian derivatives market operates.
They will be meeting officials of the Bombay Stock Exchange, the
National Stock Exchange of India and the Securities Board of India on
that tour which will give them the much needed exposure.
The Indian derivatives market has been proved successful with it
overtaking the equities market by many fold, he explained.
The SEC has appointed its Director Derivatives Vasula Premawardena to
work in close collaboration with India’s Ajay Shah and Susan Thomas, two
members of the Gupta Committee which launched the Indian Derivatives
Market seven years ago.
International experience has also showed that derivatives are being
traded by a majority of retail investors which is currently devoid in
the Sri Lankan capital market, he stressed. |
