Sri Lanka Equity Forum
Dear Reader,

Registration with the Sri Lanka Equity Forum would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
Sri Lanka Equity Forum

Discussion Forum for Stock Market Investors in Sri Lanka

සිංහල පරිවර්තනය
Submit Post
Submit Post
Market Place

Add an ad

View all ads

Latest topics

» Triple Top Reversal pattern
by Teller Today at 9:16 pm

» lOFC definitely will hit 6/-
by Winner123 Today at 7:45 pm

» Keep eye on Politics
by Yahapalanaya Today at 6:25 pm

» Bottom of market
by samaritan Today at 6:14 pm

» BFN - PRIVATE PLACEMENT ANNOUNCEMENT TO COME SOON
by mahasona2 Today at 1:00 pm

» LOFC - LDEV -EXPO ....BULL RUN TIME FOR COLLECTION ..
by mahasona2 Today at 12:54 pm

» Why AAIC Should trade above RS.50/-
by wisdom79 Today at 12:38 pm

» PAN ASIA POWER
by Nuwan Samarawickrama Today at 10:33 am

» Aluf will be better
by wisdom79 Today at 8:50 am

» Stop promoting garbage. Don’t get deceived.
by wisdom79 Today at 8:46 am

» RICH is not bad @ 9/-
by Teller Today at 3:18 am

» BFN බොරු සෙලින් දාලා කොහොම හරි 11 වගේ ගානට 500000 එකතු කරගන්න කියලා අර 14 ට ලක්ශයක් සෙලින් දැම්මේ මේ ටේලර් මහත්තයාම තමයි
by Teller Today at 3:16 am

» Be careful with HVA and LITE
by Teller Today at 3:11 am

» WATA future looks good
by Teller Yesterday at 10:00 pm

» If i am the EPF buyer,I will go for PLC
by Teller Yesterday at 9:59 pm

» LLUB Pattern reversed. Good buy @60, target +20%
by Teller Yesterday at 9:58 pm

» THE CURSE ON JKH
by Teller Yesterday at 9:04 am

» Why we should buy AEL.N0000…?
by Miss-Sangeetha Yesterday at 7:45 am

» The Curse Of AEL
by Yahapalanaya Tue Jun 18, 2019 11:06 pm

» Senthilverl Drives Sri Lanka Stock Market Turnover to hit Rs.2 billion
by Yahapalanaya Tue Jun 18, 2019 11:03 pm

» 8 Finance companaies to be closed very soon
by samaritan Tue Jun 18, 2019 8:52 pm

» Copreus (Pvt) Ltd - Need some Information
by Copreus Tue Jun 18, 2019 12:44 pm

» BALA can come down to 9/-
by Teller Tue Jun 18, 2019 12:27 am

» MARKET UP......BUT BFL....GRAN....TAFL......
by Trader321 Mon Jun 17, 2019 4:31 pm

» TAFL - GOLDEN EGG IN POULTRY SECTOR
by Trader321 Mon Jun 17, 2019 4:29 pm

» MGT.N0000 & TJL.N0000 keep eye.
by Trader321 Mon Jun 17, 2019 3:58 pm

» TAFL.N000 / GRAN.N0000
by Trader321 Mon Jun 17, 2019 3:57 pm

» Market will test 4700
by karuna2 Mon Jun 17, 2019 1:08 pm

» Loss-making stockbrokers may not last six months
by Miss-Sangeetha Mon Jun 17, 2019 12:51 pm

» Those who are having SUGA And HDEV (Hotel Developers)coming week you all can excpect Good News to come
by Capton KIng Cool Mon Jun 17, 2019 12:25 pm

» ECL wAS 2.8 Last week Today 4.7 .Whats Next? Acme?
by Capton KIng Cool Mon Jun 17, 2019 9:02 am

» IDL IDL IDL
by Teller Sat Jun 15, 2019 6:18 pm

» Look APLA its trending to 98LKR
by Teller Sat Jun 15, 2019 2:24 am

» SAMP Oversubscribed?
by Teller Sat Jun 15, 2019 2:13 am

» Apple Lost Sales in Europe to Chinese Firms Ahead of US Huawei Crackdown
by Teller Sat Jun 15, 2019 1:44 am

» Market is On The Rise.Market PER 8.5, EPF Has entered the market curently they are buying AEL (Access Enginering)There'r lot of counters. Rich,TkyoAsir,Amsl,Osea.CINV.EXPO,JINS and Tyre.good luck
by wisdom79 Fri Jun 14, 2019 7:55 pm

» NEXT RUN People's leasing and Finance WAIT AND WATCH ENJOY RIDE..
by ddrperera Thu Jun 13, 2019 9:25 pm

» EPF Investment in Unquated copmanies .Who is responsible Previous Centeral Bank Governer and Former Regime.
by Capton KIng Cool Thu Jun 13, 2019 9:05 am

» PDL (Property Development)
by Capton KIng Cool Thu Jun 13, 2019 8:51 am

» EAST Steady at 18
by Cricketman Thu Jun 13, 2019 5:28 am

» Guys what happen these days
by Yahapalanaya Thu Jun 13, 2019 2:29 am

» its right time to buy PHAR@700
by Teller Thu Jun 13, 2019 12:50 am

» Look PAP Amazing company
by Teller Thu Jun 13, 2019 12:46 am


You are not connected. Please login or register

Sri Lanka Equity Forum » Stock Market Talk » Banks Rights Issues has started

Banks Rights Issues has started

Go down  Message [Page 1 of 1]

1Banks Rights Issues has started Empty Banks Rights Issues has started on Tue Mar 07, 2017 8:30 am

jayathu


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
PABC suceessfully did it, now commercial bank is doing it. Soon HNB, SAMP, DFCC and NDB will do it to raise funds for future growth and further capitalize the banks.

Raising funds through debentures is not an option at the moment due to tax changes. Now only option for banks is to find a private placement or go for a right issue.

2Banks Rights Issues has started Empty Re: Banks Rights Issues has started on Tue Mar 07, 2017 10:03 am

hettdas

hettdas
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
Jayathu , What is the tax imposed on Debentures recently?

3Banks Rights Issues has started Empty Re: Banks Rights Issues has started on Tue Mar 07, 2017 10:19 am

jayathu


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
tax exception given fr corporate is gone. Earlier we weren't liable to pay taxes on debenture interest earned.

4Banks Rights Issues has started Empty Re: Banks Rights Issues has started on Tue Mar 07, 2017 10:46 am

soileconomy

soileconomy
Vice President - Equity Analytics
Vice President - Equity Analytics
In an environment where interest rates are going up rights issue is a good option.if valuable shares are going for rights issues ,overall market may go down.

5Banks Rights Issues has started Empty Re: Banks Rights Issues has started on Tue Mar 07, 2017 12:18 pm

hettdas

hettdas
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
what is the tax percentage for interest of debentures per annum?
Also will this tax effect previous debentures listed before budget?

6Banks Rights Issues has started Empty Re: Banks Rights Issues has started on Tue Mar 07, 2017 12:35 pm

jayathu


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
@hettdas i work for an insurance company in fund management side. For us corporate tax is 28%. Until now our debenture interest income is not liable for that, but now it's liable. Corporate tax varies according to the different sectors.

So now if we invest in a debenture which gives 14%, our nett return will be 10.08%. So it'll be very unattractive to invest in debentures. Under current T'Bill and T'Bond rate, if a company issues 3yr debenture, they must at least give 19%. Then net return for us is 13.68%, which is comparable for 3yr T'Bond rate. AER might vary according coupon paying method.

7Banks Rights Issues has started Empty Re: Banks Rights Issues has started on Tue Mar 07, 2017 1:25 pm

hettdas

hettdas
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
@jayathu wrote:@hettdas i work for an insurance company in fund management side. For us corporate tax is 28%. Until now our debenture interest income is not liable for that, but now it's liable. Corporate tax varies according to the different sectors.

So now if we invest in a debenture which gives 14%, our nett return will be 10.08%. So it'll be very unattractive to invest in debentures. Under current T'Bill and T'Bond rate, if a company issues 3yr debenture, they must at least give 19%. Then net return for us is 13.68%, which is comparable for 3yr T'Bond rate. AER might vary according coupon paying method.  



Thank you Jayathu. Lets see after April. We can check exact percentage after April since all budget decisions would implement after April 1st.

8Banks Rights Issues has started Empty Re: Banks Rights Issues has started on Sat Mar 11, 2017 11:04 pm

anges


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
seems like goverment needs money badly ! may be 2019 will be year ??????????????

9Banks Rights Issues has started Empty Re: Banks Rights Issues has started on Sun Mar 12, 2017 2:11 pm

worthiness


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Is debenture interest subject to 28% tax?

10Banks Rights Issues has started Empty Re: Banks Rights Issues has started on Mon Mar 13, 2017 8:29 am

jayathu


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
Yep, still there's some confusion can the existing debentures we have invested can be or cannot be taxed.

Sponsored content


Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum