Protecting investors top priority - Balendra
Ravi LADDUWAHETTY
New Colombo Stock Exchange Chairman Krishan Balendra said his top
priority will be to protect investors through a two- pronged method. He
said that the Exchange would expeditiously implement the Central Counter
Party system and the Delivery Versus Payment system, while encouraging
more companies to list on the CSE. The Central Counter Party system was
to ensure the protection of investors in the event of a trade default
when the purchasing party does not pay and a pool of funds will be
created towards that, Balendra told Daily News Business yesterday.
Krishan Balendra |
He said the idea has been accepted in principle but the mechanics had
to be worked out.
The next priority would be to implement the Delivery Versus Payment
System which means that the shares will be transferred to the seller
only at the time the payment is made in sharp contrast to the present
system where the shares are transferred immediately to the buyer and
payment made after three working days, he said. There are a number of
new initiatives which have been started and they would be implemented,
he said.
One of the main objectives of the CSE will be to induce more
corporates to list, aimed at increasing liquidity and turnover levels.
However, no specific destinations have been decided to have
international road shows.
He also said that the CSE would work in close collaboration with the
Securities and Exchange Commission, the brokers and other stakeholders
to develop capital markets.
Asked about his personal sentiments on being the youngest CSE
Chairman at 38 he said : “I have the relevant experience in the capital
markets industry and I look forward to the challenge. There is a lot to
be done”. |