Total Credit available to rise to Rs.8.7 billion-SEC allows Credit

Rajaraam

Rajaraam

Vice President - Equity Analytics

Posts : 1208
Join date : 2011-07-01

sapumal wrote:Ok. this is the thing.
Now we are eligible to get 8.7Bn worth credit. That credit is not applicable to T+5. But all the credit beyond that is needed to be clear, so that credit is applicable to T+5.
If your broker is selling your stocks within T+5 then that broker has gone beyond his available credits. Otherwise you can hold your credit beyond T+5 if your portfolio is not diminution

Yes .u are right. Every individual investor/trader should know his/her responsibility.I dont think investore/traders who are dealing shares do not aware of settlement rules.

wikum100

wikum100

Senior Manager - Equity Analytics

Posts : 303
Join date : 2011-01-28

sapumal wrote:Ok. this is the thing.
Now we are eligible to get 8.7Bn worth credit. That credit is not applicable to T+5. But all the credit beyond that is needed to be clear, so that credit is applicable to T+5.
If your broker is selling your stocks within T+5 then that broker has gone beyond his available credits. Otherwise you can hold your credit beyond T+5 if your portfolio is not diminution

now clear ...thanks .......

Rajaraam

Rajaraam

Vice President - Equity Analytics

Posts : 1208
Join date : 2011-07-01

ude zoysa wrote:hey experts, still confused with this t+3 t+5 thing. Can anyone explain it simply? does this have anything to do with the 30% excess buying power we get??

Dear Zoysa,
T+3 or T+5 is your settlement circle. If you buy shares you have to settle within 3 market days under T+3 or within 5 market days under T+5 . Options are (1)You pay in cash to your broker. (2)You arrange a margin facility with a Bank/Financial institution to settle your dues to the broker and broker will settle it to the seller through CSE.(3)You get a facility from your broker as agreed conditions. Issue here is the time factor. If you have arranged a facility with your broker no additional time required to arrange the facility and therefore without any hesitation you can immediately buy stocks as you wish. Relaxed rules would help the market to improve it's turnover thus encouraging big dealers to re-enter.

CSE.SAS · 29 SEC relaxes controls, credit to increase by Rs. 5bn Tue Jan 17, 2012 12:33 am

CSE.SAS

Global Moderator

Posts : 2620
Join date : 2011-02-02

System will fall more into debt, illiquidity will re-surface, need to look for other sources for capital, says broker

The much awaited announcement which kept the stock exchange jittery for weeks was finally made yesterday, with the market closed for a special bank holiday. The country’s capital markets watchdog the Securities and Exchange Commission (SEC) announced that limits imposed on brokers to extend credit would be relaxed which would increase the amount of credit available in the market by Rs. 5 billion.

However, a leading broker firm has warned that the market would have to look for other sources for capital because the fresh infusion of credit would soon wear-out.

http://forum.srilankaequity.com/t14998-sri-lanka-newspaper-17-01-2012#97577

Universalgoal

Universalgoal

Assistant Vice President - Equity Analytics

Posts : 859
Join date : 2011-09-15

in the mean time sec should plan to stop bubbles, if not we face the same scinario which popup throghout last year verry soon:pale:

aj

aj

Assistant Vice President - Equity Analytics

Posts : 766
Equity Stars : 5433
Reputation : 45
Join date : 2011-11-25

Nice comment in Broker Leveraging (http://lbo.lk/fullstory.php?nid=1719409673)

3.leasureJan 17
Amaya, I don't think SEC is making a mistake this time. The SEC probably reckons that this will not have any impact. What is 3.7 billion after all? Just enough to absorb a few weeks of foreign selling!
No the SEC probably reckons that once this card is played the broker will not have any other cards to play and the SEC can then carry on their task in peace.

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Total Credit available to rise to Rs.8.7 billion-SEC allows Credit

26 Re: Total Credit available to rise to Rs.8.7 billion-SEC allows Credit Mon Jan 16, 2012 10:45 pm

Rajaraam

27 Re: Total Credit available to rise to Rs.8.7 billion-SEC allows Credit Mon Jan 16, 2012 10:56 pm

wikum100

28 Re: Total Credit available to rise to Rs.8.7 billion-SEC allows Credit Mon Jan 16, 2012 11:05 pm

Rajaraam

29 SEC relaxes controls, credit to increase by Rs. 5bn Tue Jan 17, 2012 12:33 am

CSE.SAS

30 Re: Total Credit available to rise to Rs.8.7 billion-SEC allows Credit Tue Jan 17, 2012 9:31 am

Universalgoal

31 Re: Total Credit available to rise to Rs.8.7 billion-SEC allows Credit Tue Jan 17, 2012 10:17 am

aj

32 Re: Total Credit available to rise to Rs.8.7 billion-SEC allows Credit

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