To enhance productivity, efficiency:

SEC, brokers iron out nagging issues

Charumini de Silva

The Securities and Exchange Commission (SEC) and stock brokering companies held discussions to find ways and means to enhance productivity and efficiency of the Colombo Stock Exchange (CSE) last week.

Speaking to the Daily News Business SEC Chairperson Indrani Sugathadasa said the discussions were successful as both parties had a better understanding.

“We will reconsider the directives of the SEC after the stock brokering companies submit their suggestions in written form,” she said.

The SEC looks forward to announce the final conclusion of the discussions on Wednesday. The stock brokering companies also suggested to review them individually in taking certain measures. The companies were very much aware of the decision why the SEC took directives by itself and they were very understandable,” Sugathadasa said.

The Chairperson said daily and small investors were affected due to the lower performance in the Colombo Stock Exchange (CSE).

However, stock brokering companies had mentioned that it was a good lesson and in the future each individual will be more careful, Sugathadasa said.

Stockbrokers’ Association Chairman Sriyan Gurusinghe said the discussions between the SEC and them was very successful. “We expect that the SEC will consider our decisions and bestow a fair decision,” he said.

Due to SEC directives and market players, retail investors, market liquidity and daily trading at the stock exchange was affected.

He said there were suggestions from both parties to enhance productivity except the price band issues.

“The stock market should be more flexible where free market forces could operate. We as the Association expect that the SEC will take a decision where it would benefit all stakeholders in the capital market,” Gurusinghe said.