Can any body, please explain the actions taken by our regulators to regulate the market. My opinion is they didn’t regulate. But they just restrict the free market. Primary objectives of a stock exchange are easy transferability of shares and raising funds for the companies when required. In our market both these objectives are failed during last one year period. Liquidity is dropping day by day.
See the examples in USA. They didn’t impose restrictions on the market. But they identified the culprits and punished them. Our regulators are talking about stopping insider dealings and other frauds. But their own committee decisions are leaked in the past, before making them public.
Today, Shares of Tokyo Electric Company went up by 40%, imagine in a single day. If this happened in Sri Lanka, they will apply the secret formula and impose a price band. Price bands are always affecting small investors negatively.
Some time back, even in CSE there was the circuit breaker system. When price of a share appreciate/depreciate by a certain percentage, trading will stopped for that share and CSE is calling explanations from the company. After publishing that explanation, trading will commence again probably in the same day. But in the price band system, nobody knows the mechanism as it is a top secret and the band is imposed after market closes. Further, if there was a justifiable reason for the increase/decrease, still the price band is in force. Don’t you think it’s Absurd!
- Attachments
- Tokyo Electric.png
- You don't have permission to download attachments.
- (29 Kb) Downloaded 11 times