Stock Brokers Association clarifies recent proposals

The negative publicity has caused the public to lose confidence in the Colombo Stock Market. We the Colombo Stock Brokers Association (CSBA) would like to categorically state that we are unequivocally committed towards the development of the capital market whilst appreciating a balanced approach towards regulating the market.

In this regard, we very much welcome a consultative approach through which a majority consensus could be obtained prior to introducing new regulations to the market, the Association said.

In the recent past, the CSBA has earnestly sought some policy changes to formulate strategies in developing the equity market and to keep in line with the broad macroeconomic objectives set by the government in post war Sri Lanka.

Towards achieving this goal, we went through a series of meetings beginning with the Board and Management of the CSE, then the Securities and Exchange Commission (SEC) and finally with the President Mahinda Rajapaksa, who gave the CSBA an opportunity to place its proposals for consideration. All the 28 registered stock broking firms of the CSE were individually invited to attend the meeting with the President, and 22 of them attended.

We would like to point out that providing credit is a basic need in any industry and all stock broking companies in almost all the countries provide margin-trading facilities directly or through its related companies. Our proposals were put forward as a plan of action to energize investor participation and restore confidence in the Colombo Stock Market. The Association would like to reiterate that we are fully supportive of regulations and any action taken against wrong doers, and would shortly adopt a code of ethics to ensure that all members follow rules and regulations in line with international best practices, the Association said.

The CSBA has been in existence since 1995 and our members have played an active role in the Colombo Stock Exchange (CSE) and have always acted in the overall best interest of developing the Sri Lanka’s Stock Market. (SJ)