Stockbrokers to extend credit
The Securities and Exchange Commission (SEC) has encouraged
stockbrokers to extend credit facilities to their clients through margin
providers registered with the Securities and Exchange Commission of Sri
Lanka.
Securities and Exchange Commission of Sri Lanka Chairperson Indrani
Sugathadasa together with other members and officials of the Commission
and CSE Chairman Nihal Fonseka met members of the stockbroking industry
on Wednesday and informed the stockbrokers that the directive that was
issued earlier by the Commission on extending credit to any investor
beyond T+3 days, was not a measure taken by the Commission to discourage
investors, but was a critical step taken towards managing the inherent
systemic risks in the capital market.
The Commission has published a list of the Margin Providers
registered with the Securities and Exchange Commission of Sri Lanka in
the newspapers for the information of the public and has also made the
list of registered Margin Providers available on the website of the
Securities and Exchange Commission of Sri Lanka (www.sec.gov.lk).
The Commission having taken note of the concerns of the stockbroking
industry also permitted stockbrokers to grant a brief grace period to
buyers who are in default of settlement by T+3. Stockbrokers will be
granted an additional two days to force-sell securities of buyers which
are in default of settlement by T+3 in order to recover the monies owing
to them by such defaulting client.
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