Foreign Margin!

MarketSIRA · 1 Foreign Margin! Fri Feb 03, 2012 2:47 am

MarketSIRA

Senior Equity Analytic

Posts : 84
Equity Stars : 5054
Reputation : 15
Join date : 2011-02-03

Foreign Margin

Link: http://lankabusinesstoday.com/news/market/1122-foreign-margin

Foreign owned companies to be permitted to engage in the business of Margin Providing
It has been decided to permit foreign owned companies which are registered with the Securities and Exchange Commission of Sri Lanka as Margin Providers, to engage in the business of provision of credit to investors of the Colombo Stock Exchange, Central Bank recently told in a statement.

The Central Bank is of the view that this move would help develop the business of margin providing, and also increase market activity by improving the access to finance for investors.

Last edited by dinusl on Fri Feb 03, 2012 9:13 am; edited 1 time in total (Reason for editing : modified the format)

lokuayya · 2 Re: Foreign Margin! Fri Feb 03, 2012 8:24 am

lokuayya

Senior Manager - Equity Analytics

Posts : 307
Equity Stars : 5092
Reputation : 18
Join date : 2011-07-06

can we have cheap credit through this.If I can get margin below 9 percent I will go in to investment on margin even for long term.

amilaela

amilaela

Senior Manager - Equity Analytics

Posts : 430
Equity Stars : 5218
Reputation : 18
Join date : 2011-10-06
Location : colombo

Sri Lanka has decided to permit foreign owned companies registered under the market regulator as “margin providers” to lend credit to investors of the Colombo Stock Exchange.
Central Bank says this move will help develop the business of margin providing and also increase market activity by helping investors to have more access to finance.

http://www.news360.lk/markets/stock-market/sri-lanka-permits-foreign-owned-%E2%80%9Cmargin-providers%E2%80%9D-to-lend-credit-to-investors

dinusl · 4 Re: Foreign Margin! Fri Feb 03, 2012 9:13 am

dinusl

Co-Admin

Posts : 171
Equity Stars : 5078
Reputation : 12
Join date : 2011-01-21

That might be a good decision

Rajaraam · 5 Re: Foreign Margin! Fri Feb 03, 2012 9:52 am

Rajaraam

Vice President - Equity Analytics

Posts : 1208
Equity Stars : 6042
Reputation : 113
Join date : 2011-07-01

Very good move. Competition among the margin providers would lead to reduce interest rate. Since foriegn institutions have access to low cost fundings their rates would be very competitive.

Genting · 6 Re: Foreign Margin! Fri Feb 03, 2012 10:04 am

Genting

Senior Manager - Equity Analytics

Posts : 349
Equity Stars : 5303
Reputation : 46
Join date : 2011-02-21

lokuayya wrote:can we have cheap credit through this.If I can get margin below 9 percent I will go in to investment on margin even for long term.

Most of us wont mind mind paying 10-13%. Last time when I checked it was 19%

Deva · 7 Re: Foreign Margin! Fri Feb 03, 2012 1:53 pm

Deva

Senior Manager - Equity Analytics

Posts : 356
Equity Stars : 5271
Reputation : 16
Join date : 2011-02-28
Location :

Sounds a very positive move.

rijayasooriya · 8 Re: Foreign Margin! Fri Feb 03, 2012 2:28 pm

rijayasooriya

Senior Vice President - Equity Analytics

Posts : 1827
Equity Stars : 6812
Reputation : 134
Join date : 2011-05-25
Location : Matara

Suddata salli yana thawath kramayak.
Karanna ona ape rate margin wala poliya adu karana eka.

K.Haputantri · 9 Re: Foreign Margin! Fri Feb 03, 2012 2:36 pm

K.Haputantri

Co-Admin

Posts : 2274
Equity Stars : 8883
Reputation : 390
Join date : 2011-12-06
Age : 74
Location : Moratuwa

Credit in future will be more expensive because CB increased policy rates (re-purchase & riverse re-purchase) by 50 basis points today. However, foreign competition will reduce profit margins of the local banking sector.

mra · 10 Foreign companies allowed to provide margin Trading Fri Feb 03, 2012 3:38 pm

mra

Manager - Equity Analytics

Posts : 271
Equity Stars : 5106
Reputation : 7
Join date : 2011-06-22
Location : Colombo

"Foreign companies allowed to provide margin loans for stock Trading"
CBSL-LBO - 2nd-feb-2012

greedy007 · 11 Re: Foreign Margin! Sat Feb 04, 2012 5:30 pm

greedy007

Senior Manager - Equity Analytics

Posts : 320
Equity Stars : 5035
Reputation : 23
Join date : 2011-07-28

Rajaraam wrote:Very good move. Competition among the margin providers would lead to reduce interest rate. Since foriegn institutions have access to low cost fundings their rates would be very competitive.

But need to be careful.
They'll suck to the end when you give a chance.