SEC makes positive decision: Details of new credit rules out

Marketinvest

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The special meeting of the SEC Commissioners yesterday had taken a positive decision with regard to relaxing credit rules, industry sources told the Daily FT.

A short but decisive meeting had studied all facts and information submitted by the SEC Secretariat relating to pros and cons of relaxing credit rules as well as suggestions byColombo Stock Brokers Association before making its final decision.

Daily FT learns that full disclosure of the decision made by the Commissioners will be made today. In essence, brokers who are liquid and have the capacity will be allowed to lend to their clients according to industry sources.

http://www.ft.lk/2011/08/16/sec-makes-positive-decision-details-of-new-credit-rules-out-today/

Marketinvest

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We won what a moment. This is the moment we all were waiting for. Market is going to be on bad DARK GREEN.
HAPPY TRADING EVERYONE!!

dinusha.kiwulegedara

dinusha.kiwulegedara

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Good time for all.......!!! Very Happy

sajeethk

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but still dont know wt is the out come of the meeting ....

Marketinvest

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According to the article, they will allow brokers to lend credit.

Marketinvest

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Further more ASI crossing 7000 is a possibility today.

ssuni

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ye,I think buying power has increased ..

swan03

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Hooreeeyy!!! cheers

seyon

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Thanks to SEC..

wmdcf

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Lets see what happens....! Hope for the BEST Basketball

hawklk

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While we hope for the best, I am bit worried that it does not create another market fluctuation due to credit issue. I hope SEC and CSE will take proper decision this time. I hope that there will be proper controlling procedures in place to prevent another market downtrend. Market will face up and down trends but I feel it should not be forced upon.

My thinking is that you learn from your past to have a better future. Lot of ppl have suffered badly. Let it not be repeated again.

Also beware of fake rallies.

Good luck and happy trading.

pushpakumara

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hawklk wrote:While we hope for the best, I am bit worried that it does not create another market fluctuation due to credit issue. I hope SEC and CSE will take proper decision this time. I hope that there will be proper controlling procedures in place to prevent another market downtrend. Market will face up and down trends but I feel it should not be forced upon.

My thinking is that you learn from your past to have a better future. Lot of ppl have suffered badly. Let it not be repeated again.

Also beware of fake rallies.

Good luck and happy trading.

Yes, slow, steady and controlled growth is better than a faster run. That way we can predict the market to an extent compaired to current trend.

windi5

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At last.

Backstage

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I think forced selling method was more the issue for suppression rather than credit (though linked) I hope they have sorted that out.

windi5

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Hope this wont be an another Carrot.

MJ

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yes, hat s the last thing we need now

JennyFunny

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Yea lets see bull run today..yeah yeah

Marketinvest

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As per my broker its going to be t+15

Soundchips

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medium term investments are a safer option...

rijayasooriya

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It is nice that SEC is atleast learning from their mistake.Thanks SEC.....!

MJ

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Hurrayyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyy

MJ

MJ

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Market is going crazyyyyyyyyyyyyyyyyyyyyy

swan03

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Cant read on CSE site. Anyone can read?

wmdcf

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Securities & Exchange Commission of Sri Lanka has relaxed the restrictions imposed on Stock Brokers in extending credit to investors subjected to the certain prudential requirements being met by the Brokers.
Accordingly, the SEC has directed the Colombo Stock Exchange to permit Stock Brokers to extend credit to investors over T+3 days based on the computation of Liquid Assets less Obligations, maintaining a leverage at zero level.
Following is the announcement made by the SEC

DIRECTIVE UNDER SECTION 13 (c) OF THE SECURITIES AND EXCHANGE COMMISSION OF SRI LANKA ACT NO. 36 OF 1987 (AS AMENDED)

The Securities and Exchange Commission of Sri Lanka (SEC) at a Special Commission Meeting held on 15th August 2011 reviewed the restriction imposed on Stock Brokers in extending credit to investors and has decided to relax the said restriction subject to certain prudential requirements being met by the Licensed Stock Brokers, in order to facilitate retail investors to have access to credit by such Licensed Stock Brokers.
The SEC took cognizance of the improving stability in the capital market together with the concerns expressed by the Colombo Stock Brokers Association and retail investors and decided to relax the said restriction subject to prudential requirements as mentioned below.
Therefore, the SEC hereby directs the Colombo Stock Exchange (CSE) as follows:
1. To permit Licensed Stock Brokers to extend credit to investors over T+3 days based on the computation of Liquid Assets less Obligations, maintaining a leverage at zero level as set out in Annexure 1 hereto;
2. To amend the relevant provisions of the Member Regulations of the CSE in such manner to be consistent with this Directive;
3. To mandate Licensed Stock Brokers to reconcile daily positions taken against the Liquid Assets by such Licensed Stock Broker and to submit on a monthly basis a declaration to the SEC and CSE confirming the position of Liquid Assets less Obligations as it stands at the end of each month. The declaration to be submitted within 2 market days after the end of each month;
4. To disseminate this Directive to all Members of the CSE.
This Directive shall be effective from the date hereof.

ssb

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my heart is beating Smile

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SEC makes positive decision: Details of new credit rules out

1 SEC makes positive decision: Details of new credit rules out Tue Aug 16, 2011 1:11 am

Marketinvest

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dinusha.kiwulegedara

4 Re: SEC makes positive decision: Details of new credit rules out Tue Aug 16, 2011 3:15 am

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8 Re: SEC makes positive decision: Details of new credit rules out Tue Aug 16, 2011 7:10 am

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10 Re: SEC makes positive decision: Details of new credit rules out Tue Aug 16, 2011 7:44 am

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hawklk

12 Re: SEC makes positive decision: Details of new credit rules out Tue Aug 16, 2011 8:09 am

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14 Re: SEC makes positive decision: Details of new credit rules out Tue Aug 16, 2011 9:04 am

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21 Re: SEC makes positive decision: Details of new credit rules out Tue Aug 16, 2011 1:38 pm

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