SEC should woo day traders - SEC DG
Ramani KANGARAARACHCHI
The Securities and Exchange Commission of Sri Lanka (SEC) needs to
introduce new products and bring in day traders who are short term
investors to generate activism in the stock market, Director General
Securities and Exchange Commission of Sri Lanka Channa de Silva told
Daily News Business.
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Channa de Silva |
He said day traders are a big component in the stock market but the
cost factor is a challenge under the current economic situation.
The transaction costs to introduce this is high, but we will be able
to reduce this cost and introduce it here within the next six months,"
De Silva said.
In India seventy per cent of the trades come from day traders and Sri
Lanka will also benefit immensely once it is implemented.
There are four-hundred-thousand treasury bill accounts with the
Central Bank which came through twenty-one brokers who are familiar with
the Colombo Stock Exchange and the SEC is in the process of working out
a strategy with the Central Bank to take the treasury bill system to the
household level which will be a risk free investment where people will
get real value for money.
There will be an overwhelming response to this because many people do
not know about treasury bills and how to invest in treasury bills, said
De Silva. De Silva said that first of all, it is necessary to assess the
total impact of the international market and create collective think
tanks to look at innovative solutions to face the current economic
crisis.
Establishing a deposit guarantee scheme supporting SMEs and
capitalizing banking companies further are also some of the other
measures. |
