Sri Lanka allows Private Provident, Savings, Pension, Trust and Gratuity Funds to invest in the capital market

sriranga

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Sri Lanka has relaxed restrictions placed on Private Pension, Provident, Gratuity, Trust and Savings Funds, in making investments in the local capital market.

Accordingly, the above said funds can now invest not more that 20% of the moneys of the fund, in listed debentures or other stocks.

They will also have to invest 40% of their moneys by way of deposits in the Bank of Ceylon, People’s Bank, National Savings Bank or in investments in government securities.

Any balance should be invested by way of deposits in other commercial Banks.

Securities and Exchange Commission said, the latest relaxations has been brought in with the aim of developing the Sri Lankan capital market through widening the domestic investor base and enhancing the returns of the contributing members of these funds, which by nature have a long- term investment horizon.
http://www.news360.lk/markets/stock-market/news-stocks-sri-lanka-06-11-2012-allows-private-provident-savings-pension-trust-and-gratuity-funds-to-invest-in-the-capital-market-6677881

Arena

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GOOD move Again..................

Backstage

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Oh I say !

Does anybody have an idea, as to what kind of inflows we could expect into the CSE as a result of this ?

K.Haputantri

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One may say its a good move but I do not know whether these funds in the afe hands.

Judging by the recent transactions of these funds instigated by some politically appointed crooks we need to call for comprehensive set of fool proof guidelines to control them. I hope judgements on recent court cases would deal with this issue.

FALCON · 5 CSE relaxes investment restrictions Tue Nov 06, 2012 3:52 pm

FALCON

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http://www.dailymirror.lk/news/23260-cse-relaxes-investment-restrictions.html

Slstock

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SEC seems to be keen see market move?

VISA

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Nov 06, 2012 (LBO) - Sri Lanka's pension funds can invest up to 20 percent of their funds in listed stocks and debentures, the Securities and Exchange Commission said, after curbs were relaxed last year.

Under rules issued by gazette in May 2011, pension funds can invest up to 20 percent in listed securities, 40 percent in state banks and government securities and the balance in other commercial bank deposits.
The SEC said it had made representations to the ministry of finance and the commissioner general of inland revenue to lift a prohibition on investing pension fund money in capital markets.

In Sri Lanka the state manages most pension funds of private citizens, though there are some private pension funds, especially in older commercial organizations.

The state mostly uses the money to fund budget deficits and can compel the money to be invested in the state or state entities.

Before 2011, pension funds were required to invest up to 50 percent of their funds in government securities and designated state banks. No mention had been made about equities.

The investment of people's money managed by the state, such as those in the Employees Provident Fund and Employees Trust Fund have been a long term request of senior private sector employees.

However there has also been concerns lately that the pension funds have been used by the so-called 'stock market mafia' to dump dud or fundamentally weak stocks which had been pumped up.

Many fundamentally strong stocks are now trading at better valuations.

http://www.lbo.lk/fullstory.php?nid=818810035

Arena

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Any fund should have the ability to invest in Stock markets.

How they invest is another matter. There should be a good governance and a transparent system to be followed.

I want sri lankan funds to buy our great valuable stocks like LGL, JKH , HELY, RICH ect...instead of crap Foreigners. Sri lankan Equity mkt is a golden opportunity for cash rich long term funds .

D.G.Dayaratne

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Independent Professional should be appointed to manage Public FUDS such as EPF,ETF etc Not S.S.C(English Mediam.) people as mentioned in some letters
issued by CSE
I do no know What is the role of PBJ ?

Written guide line should be followed.nor verbal instruction By CROOKS

It is necessary to manage Central Bank By independent Economist or Public servant like Mr DIsanayaka one time governor of Central Bank

jaya · 10 Good News for CSE Tue Nov 06, 2012 6:19 pm

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http://www.dailymirror.lk/news/23260-cse-relaxes-investment-restrictions.html#comments

skipper

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D.G.Dayaratne wrote:Independent Professional should be appointed to manage Public FUDS such as EPF,ETF etc

Totally agree with you. But from what I've heard most of the employees in the investment divisions in EPF,ETF or even banks are well qualified.

The problem we have is lack of independence and transparency. Most of those funds have well written investment policies, which are ignored when making investment decisions. Exclamation

D.G.Dayaratne

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I also fully agree with you

We also have good economist as secretary to the Finance ministry

BUT...................

Who are responsible ? WHO?

WHO APPOINT SSC (English Medium) People to manage these institutions?

I got this information from a letter circulated by CSE.

Last edited by D.G.Dayaratne on Tue Nov 06, 2012 8:16 pm; edited 1 time in total (Reason for editing : TO explain further)

manula

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Good move if invest in proper way ..good for the funds and market movemnt.. (Not like invest in greek bonds ??)

aj

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I guess this means Sri Lankans cannot have the guarantee that when they save for the retirement they will get anything. There is the possibility that when the get to the old age after working like oxen and find that the fund has wasted their money by brokers and crooks and they get nothing. Is that it?

Arena

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Even People killed on zebra crossings due to care less drivers.

The solution is not to prohibit road crossing or driving vehicles but to go with controls and rules.

That is my point.

Tell any name who hasnt received his/her pension fund at the end. No body.......Dont see crocodiles in your plate. It is just a small fish of a halmassa.............

aj

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This is Sri Lanka. Land of the crooks. If this was a human civilization there's no problem. Sri Lanka is a corrupt state. There is no law and order. God bless law abiding citizens. Try to learn to steal.

Arena

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Can u provide a comprehensive analysis to prove your statement. You should compare with another third wold economy like India or Pakistan. Who dose more corruptions..................

aj

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Amal Mudunkotuwa wrote:Can u provide a comprehensive analysis to prove your statement. You should compare with another third wold economy like India or Pakistan. Who dose more corruptions..................

That's Sri Lankans excuse. Because India and Pakistan are corrupt. God bless Sri Lanka.
When thieves relax the laws so that they can break in to your house and kill your children and take your money without punishment or small fines please go talk for their side.
Sri Lankans should know that if crooks kill you on the road, or their sons beat in a hotel, or gun you down somewhere, or steal public funds, take bribes and build low quality bridges, free their fellow cronies they go unpunished unless one those crooks go against the whole lot of crooks like the CJ. Try to apply for job in ITN. You will get it.

Arena

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ha ha . I dont like to work in medias rather ill buy or start one.

Any way at last you gave a point. India pak. are corrupt. oK.

Then take Malaysia before 1995 and think.

Malaysia also got the independence on 1963..........and it took 30 years to start their GDP growth and in 2002 they passed 100b economic milestone for the GDP with all the foreign inflows.

In 1998 Malaysian crisis started which eroded 30% of the economic GDP with in 2 years.

Can u believe the magnitude of 30% of the economy.....

Has Malaysia government controlled ( During 1995 - 1998 )their FDI correctly............You cant say No...................because they started one of the greatest economic boom in the history of the world from 2002 to today.....................GDP is now about to pass 300b..........

Can u believe it is 300b and a 200% growth for the last 10 years.

You know what kind of social transformation happened from 1995 to today in Malaysia. All the cheesiness and Indians are all over the country. It is a disaster in that sense but in 2011 they got a US$ 10,000 Per capita income and every body is happy. Their population is also same as sri lanka. ( 28m )

There were hell of lot people like you who does nothing but blamed all the actions taken by the government and to the entire nation.

IF government is not good you start to change it. BY 2030 you can be a minister and do what you can do instead of leaving the country and dancing on another economy which is a dedication of great leaders who lived there earlier.

All migrated fellows should understand that they are just earning from others dedications who has built the UK , USA , Switzerland , Ausi and ect........They hvnt done any thing to the economy at least their fathers.

Hope you are migrated if not ignore the last part.

I dont argue with you further more since it wast my time in wain and i want every body at the end. No enemies, Just a argument and sorry if u hurt.

U dont need government support to run a business and give 1000s of jobs. just the dedication at least 20 hours per day like Dammika perera and other great people.

It is 20 hours per day not 2 hours.....ok...................

TC

D.G.Dayaratne

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Some of the members of this forum also try to grab money from public funds They also think about their short time benefits only

All should understand What happen after 2009 .We have seen abnormal
upward trend and abnormal downward trend.Abnormal upward trend manly due to use public funds for a 'BORUSHOW' on ECONOMY Downward trend was mainly due to action taken by SEC to prevent manipulation. and Couruptions

IF SAME THING HAPPEN AGAIN ALL OF US ,ECONOMY OF THIS COUNTRY,and THE GOVT WILL BE IN TROUBLE
THIS WILL BADLY EFFECT NEXT GENERATION

Last edited by D.G.Dayaratne on Wed Nov 07, 2012 10:15 am; edited 1 time in total (Reason for editing : Typing Mistake)

Arena

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Then 2009 upward was because of the Public money. Not the war factor. Hiyo...............

Arena

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NO any action..............Up to 6500- 7000 it was a real run. Then the peak came with all the IPOs and part of the pump dump stories. And again the bear as usual.

This is applicable for all the mkts in the worlds. Study patterns...........GDP also same , If grow at 7%- 9% for 5 to 10 years there will be a down trend for sure around 2015....................Which fuel the next run............Be practical. At lest follow past pattern and do a comparison.

My plan is this. Keep this gov. for another 3 to 5 years. they will at least finish other highways. there will be a GDP drop for sure which is a pattern.........Then lets do a revolution............How simple.........just a jork

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Sri Lanka allows Private Provident, Savings, Pension, Trust and Gratuity Funds to invest in the capital market

1 Sri Lanka allows Private Provident, Savings, Pension, Trust and Gratuity Funds to invest in the capital market Tue Nov 06, 2012 2:12 pm

sriranga

2 Re: Sri Lanka allows Private Provident, Savings, Pension, Trust and Gratuity Funds to invest in the capital market Tue Nov 06, 2012 2:24 pm

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3 Re: Sri Lanka allows Private Provident, Savings, Pension, Trust and Gratuity Funds to invest in the capital market Tue Nov 06, 2012 2:41 pm

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4 Re: Sri Lanka allows Private Provident, Savings, Pension, Trust and Gratuity Funds to invest in the capital market Tue Nov 06, 2012 2:43 pm

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5 CSE relaxes investment restrictions Tue Nov 06, 2012 3:52 pm

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6 Re: Sri Lanka allows Private Provident, Savings, Pension, Trust and Gratuity Funds to invest in the capital market Tue Nov 06, 2012 4:07 pm

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7 Sri Lanka pension funds can invest more money is stocks: SEC Tue Nov 06, 2012 4:28 pm

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8 Re: Sri Lanka allows Private Provident, Savings, Pension, Trust and Gratuity Funds to invest in the capital market Tue Nov 06, 2012 4:42 pm

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9 Re: Sri Lanka allows Private Provident, Savings, Pension, Trust and Gratuity Funds to invest in the capital market Tue Nov 06, 2012 6:18 pm

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