SEC to allow brokers to extend credit up to Rs. 2 million ?

milanka

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Sri Lanka’s Securities and Exchange Commission is likely to allow brokers to extend credit up to a limit of Rs. 2 million or probably a figure around that to help small investors in the CSE.

This is in response to a proposal forwarded by the Stock Brokers to the regulators asking for a reconsideration of the ongoing ban on margin trading.

A person closely working on the evaluation of the proposal forwarded by the brokers told News360.lk, “We are considering a limit of Rs 2 million or a figure around that to help small investors”.

However he said a final decision in this regard is yet to be made as there is opposition from certain segments of the industry who are not in favor of the SEC moves to relax the rule.

Meanwhile the Director General of the SEC Malik Cader speaking to News360.lk too confirmed that they are looking at relaxing the margin trading rule to help small time investors.

http://www.news360.lk/top-left/sec-to-allow-brokers-to-extend-credit-up-to-rs-2-million-or-a-figure-closer-to-that

Aamiable

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Thanks for infomation.

rocksan

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Oooops!!!! bit too much for me Shocked

anyway up to a certain percentage from the PF is enough i guess without forced selling every week Smile

dinusha.kiwulegedara

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Finally we won it....!!!
Razz

sanjeewa88

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One of brokers said two of top class brokering firms stand up to avoid these credit limits.

They are maintaining HNWIs' accounts.

CHASE

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rocksan wrote:Oooops!!!! bit too much for me

anyway up to a certain percentage from the PF is enough i guess without forced selling every week

Don't worry max will be 50% from you PF

npc86

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milanka wrote:
Meanwhile the Director General of the SEC Malik Cader speaking to News360.lk too confirmed that they are looking at relaxing the margin trading rule to help small time investors.
http://www.news360.lk/top-left/sec-to-allow-brokers-to-extend-credit-up-to-rs-2-million-or-a-figure-closer-to-that

It's really good ...Thanks milanka for updating it here...!
BTW he has not approved yet...Hope we can see the official announcement very soon... Smile

bsgamo

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Hureeee......

ROHAN

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Thanks for breaking news,,, Very Happy

windi5

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Final decision will take at the meeting going to be held in tomorrow.SEC
Commissioners will meet tomorrow and gonna decide on whether credit rules should be relaxed
or modified. The written announcement might come out tomorrow evening. From Thursday,there will be a new era at CSE Very Happy

arrowms

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Thx milanka for the news. Hope this will be approved.

banarahu

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Thnx for the information Milanka...

invest-abc

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Milanka, thanks for the info:. Looking at the buildup I have a strong feeling that the outcome may be positive.

Kithsiri

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Will this not create a sort of a bubble & who would ultimately be paying if goes busted? Embarassed

Aamiable

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Relaxation within limits. …..Ending force selling itself gives room for CSE to grow slowly…….. Investors return to a growing market……. Those benefits given when used as investments rater than for speculations would help market grow step by step. hope...when there is longer period to settle they do not misuse....Benefits given need to be used by retailers judiciously within limitations. ....all those benefits are to encourage investments... and to attract medium term investors... Smile

windi5

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Very much hope today evening they will declare the decision.Today mkt might go up sharply as brokers already know the news and World mkts recovery also will effect in positive way.At the moment Nikkei up by 1.56%, Hang Seng up by 3.53%

windi5

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The market regulator will have its routine (every two weeks) Commission
meeting today, and Mirror Business learns that the proposals put
forward by the Colombo Stock Brokers Association will be taken into
consideration during the session.
In their letter to the Securities and Exchange Commission, they have
requested the removal of T+5 forced selling rule and to allow all
brokers to lend their net capital which is in excess of minimum net
capital requirement of Rs. 35 million.
They also had requested to allow all brokers to transfer the excess net
capital in the broking company to the wholly owned margin trading
company, licensed and regulated by the SEC, without deducting from the
net capital.
Brokers also noted that to the best of their knowledge, most brokering
firms presently have proper systems and procedures in place to monitor
debtors and had expressed glimpse of hope for a favorable decision
speedily, to avert a continuous decline in the market.

rijayasooriya

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sanjeewa88 wrote:One of brokers said two of top class brokering firms stand up to avoid these credit limits.

They are maintaining HNWIs' accounts.

We will see how the democracy works here. Rolling Eyes

Suthar

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sanjeewa88 wrote:One of brokers said two of top class brokering firms stand up to avoid these credit limits.

They are maintaining HNWIs' accounts.

2 Broker firms are JKSB and CT Smith. It's look like they hate retailers.

nahor

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Look guys, I'm pretty sure its going to be positive news. Mr. Malik Cader has already indicated that they would "look favorably" at the proposal put forward by the stock brokers association.

duke

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rijayasooriya wrote:

sanjeewa88 wrote:One of brokers said two of top class brokering firms stand up to avoid these credit limits.

They are maintaining HNWIs' accounts.

We will see how the democracy works here.

Yes. There're broker huts on every handiya and bokkuwa.

rijayasooriya

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duke wrote:

rijayasooriya wrote:

sanjeewa88 wrote:One of brokers said two of top class brokering firms stand up to avoid these credit limits.

They are maintaining HNWIs' accounts.

We will see how the democracy works here.

Yes. There're broker huts on every handiya and bokkuwa.

Is there any broker company without a proper approval?

Some people think broker firms with lot of HNWIs have all the power to regulate the market.Some are anxiously waiting for market to get crashed so they can do bargain hunting.

duke

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Can anybody tell me if there was a rule change SEC directive in this T+5 thing, when it happened? Specific date?

Soundchips

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when ever there is limited room for credit T5 is not applicable... they can hold for some times , that helps market recover..

rukaa

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anything new............?

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SEC to allow brokers to extend credit up to Rs. 2 million ?

1 SEC to allow brokers to extend credit up to Rs. 2 million ? Tue Aug 09, 2011 11:07 pm

milanka

2 Re: SEC to allow brokers to extend credit up to Rs. 2 million ? Tue Aug 09, 2011 11:17 pm

Aamiable

3 Re: SEC to allow brokers to extend credit up to Rs. 2 million ? Tue Aug 09, 2011 11:20 pm

rocksan

4 Re: SEC to allow brokers to extend credit up to Rs. 2 million ? Tue Aug 09, 2011 11:24 pm

dinusha.kiwulegedara

5 Re: SEC to allow brokers to extend credit up to Rs. 2 million ? Tue Aug 09, 2011 11:25 pm

sanjeewa88

6 Re: SEC to allow brokers to extend credit up to Rs. 2 million ? Tue Aug 09, 2011 11:28 pm

CHASE

7 Re: SEC to allow brokers to extend credit up to Rs. 2 million ? Tue Aug 09, 2011 11:35 pm

npc86

8 Re: SEC to allow brokers to extend credit up to Rs. 2 million ? Tue Aug 09, 2011 11:38 pm

bsgamo

9 Re: SEC to allow brokers to extend credit up to Rs. 2 million ? Tue Aug 09, 2011 11:49 pm

ROHAN

10 Re: SEC to allow brokers to extend credit up to Rs. 2 million ? Tue Aug 09, 2011 11:54 pm

windi5

11 Re: SEC to allow brokers to extend credit up to Rs. 2 million ? Wed Aug 10, 2011 12:35 am

arrowms

12 Re: SEC to allow brokers to extend credit up to Rs. 2 million ? Wed Aug 10, 2011 12:41 am

banarahu

13 Re: SEC to allow brokers to extend credit up to Rs. 2 million ? Wed Aug 10, 2011 1:09 am

invest-abc

14 Re: SEC to allow brokers to extend credit up to Rs. 2 million ? Wed Aug 10, 2011 1:15 am

Kithsiri

15 Re: SEC to allow brokers to extend credit up to Rs. 2 million ? Wed Aug 10, 2011 5:02 am

Aamiable

16 Re: SEC to allow brokers to extend credit up to Rs. 2 million ? Wed Aug 10, 2011 7:34 am

windi5

17 Re: SEC to allow brokers to extend credit up to Rs. 2 million ? Wed Aug 10, 2011 7:52 am

windi5

18 Re: SEC to allow brokers to extend credit up to Rs. 2 million ? Wed Aug 10, 2011 8:12 am

rijayasooriya

19 Re: SEC to allow brokers to extend credit up to Rs. 2 million ? Wed Aug 10, 2011 8:26 am

Suthar

20 Re: SEC to allow brokers to extend credit up to Rs. 2 million ? Wed Aug 10, 2011 8:35 am

nahor

21 Re: SEC to allow brokers to extend credit up to Rs. 2 million ? Wed Aug 10, 2011 8:48 am

duke

22 Re: SEC to allow brokers to extend credit up to Rs. 2 million ? Wed Aug 10, 2011 9:05 am

rijayasooriya

23 Re: SEC to allow brokers to extend credit up to Rs. 2 million ? Wed Aug 10, 2011 9:44 am

duke

24 Re: SEC to allow brokers to extend credit up to Rs. 2 million ? Wed Aug 10, 2011 9:54 am

Soundchips

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rukaa

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