FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka


Submit PostSubmit Post
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post



Latest topics

» LANKA ALUMINIUM INDUSTRIES PLC (LALU.N0000)
by Jana Yesterday at 11:41 pm

» No trader can flee from making a mistake. It’s just that you need to be careful about not repeating your mistakes.
by Asoka Samarakone Yesterday at 8:56 pm

» LDEV LDEV LDEV
by stockchaser Yesterday at 8:43 pm

» Daily Foreign Transactions
by Pradeep90 Yesterday at 8:33 pm

» SWISSTEK (CEYLON) PLC (PARQ.N0000)
by Chithi Yesterday at 7:45 pm

» ROYAL CERAMICS PLC (RCL.N0000)
by Jana Yesterday at 6:14 pm

» US dollar trading lower, euro near new high
by target1 Yesterday at 1:38 pm

» LANKEM DEVELOPMENTS PLC (LDEV.N0000)
by Thushara Ayya Yesterday at 11:59 am

» ???? අප්‍රේල් 16 ???? මේ දින 3 කෙටි සතියත් කොළපාටින් අවසන් වුනා
by Wickyz Yesterday at 11:20 am

» DIPD/HAYC/HAYL
by Wickyz Yesterday at 11:19 am

» RAIGAM WAYAMBA SALTERNS PLC (RWSL.N0000)
by Eranga87 Sun Apr 18, 2021 4:12 pm

» GLAS will be winner with Super Gain.
by ronstyn53 Sat Apr 17, 2021 10:22 pm

» CIC HOLDINGS PLC (CIC.N0000)
by abey Sat Apr 17, 2021 9:07 pm

» First capital holdings CFVF.N0000
by invest thinker Sat Apr 17, 2021 4:46 pm

» Lanka Walltile PLC Investment Case
by judecroos Sat Apr 17, 2021 8:55 am

» Which is the best at current market condition ? ( At least 30% within 30 Days)
by judecroos Sat Apr 17, 2021 8:39 am

» Big opportunity in Kegalle Plantations
by EquityChamp Fri Apr 16, 2021 2:58 pm

» විජේදාසගේ... voice cut ප්‍රතිඵල
by nigma Fri Apr 16, 2021 11:59 am

» If you buy a stock that’s not going up in price, you won’t make any money. STOCK market for beginners
by dayandacool Fri Apr 16, 2021 11:31 am

» B P P L HOLDINGS PLC (BPPL.N0000)
by vikiperera Fri Apr 16, 2021 11:17 am

EXPERT CHRONICLE™

ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

CHRONICLE™ NEWS PRODUCTS

FINANCIAL CHRONICLE™

Views & Reviews, Analysis, Evaluations, Discussions, Gossip and Hot Tips relating to Sri Lankan companies listed on the Colombo Stock Exchange (CSE)
Contribute




DAILY CHRONICLE™

Latest news and articles published in Newspapers, Websites, Blogs and other online news sites relating to business and investments in Sri Lanka
Contribute



ECONOMIC CHRONICLE™

This is a section that provide news, views, analysis, predications relating to Political and Socio-Economic factors and how such activities affect the Stock Market and other economic activity of the Country.

Contribute




EXPERT CHRONICLE™

This is an exclusive section for Expert Articles which will help member to share knowledge through comments and responses of the members. All members are allowed to reply and make comments to these articles.

Contribute


Submit Post


CHRONICLE™ YouTube

Youtube Videos and other visual presentations relating Stock market and other investment advise submitted by members or other contributors.

Contribute


Submit Post


කොළඔ කොටස් වෙළඳපොළේ වංශකථාව
කොළඔ කොටස් වෙළඳපොළේ ලැයිස්තුගත සමාගම් කොටස් ගැන තොරතුරු¸විශ්ලේෂණ¸සාකච්ඡා¸ කටකතා¸රසකතා යන සියල්ල අපේම සිංහලෙන් කතා කළ හැකි ‘කතා මණ්ඩපය’

Contribute

Twitter Feeds
POPULAR COMPANIES
A

ABANS ELECTRICALS PLC

ACCESS ENGINEERING PLC Hot

ACL CABLES PLC

ACL PLASTICS PLC

ACME PRINTING & PACKAGING PLC

AGSTAR PLC

AITKEN SPENCE HOTEL HOLDINGS PLC

AITKEN SPENCE PLC

ANILANA HOTELS AND PROPERTIES PLC

ARPICO INSURANCE PLC

ASIA ASSET FINANCE PLC

ASIA CAPITAL PLC

B

BAIRAHA FARMS PLC

BALANGODA PLANTATIONS PLC

BIMPUTH FINANCE PLC

BLUE DIAMONDS JEWELLERY WORLDWIDE PLC

B P P L HOLDINGS PLC

BROWNS BEACH HOTELS PLC

BROWNS INVESTMENTS PLC

C

CARGO BOAT DEVELOPMENT COMPANY PLC

CENTRAL INDUSTRIES PLC

CEYLON COLD STORES PLC

CEYLON GRAIN ELEVATORS PLC Hot

CEYLON TEA BROKERS PLC

CEYLON TOBACCO COMPANY PLC

CHEVRON LUBRICANTS LANKA PLC

COLOMBO FORT LAND & BUILDING PLC

COMMERCIAL BANK OF CEYLON PLC

CITRUS LEISURE PLC Hot

COMMERCIAL CREDIT AND FINANCE PLC

D

DANKOTUWA PORCELAIN PLC

DFCC BANK PLC

DIALOG AXIATA PLC

DIALOG FINANCE PLC

DIPPED PRODUCTS PLC

DISTILLERIES COMPANY OF SRI LANKA PLC

DUNAMIS CAPITAL PLC

E

EAST WEST PROPERTIES PLC Hot

EASTERN MERCHANTS PLC

EXPOLANKA HOLDINGS PLC

E-CHANNELLING PLC

F

FIRST CAPITAL HOLDINGS PLC

G

GALADARI HOTELS (LANKA) PLC

GUARDIAN CAPITAL PARTNERS PLC

H

HATTON NATIONAL BANK PLC

HAYLEYS PLC

HAYLEYS FABRIC PLC

HAYLEYS FIBRE PLC Hot

HEMAS HOLDINGS PLC

HIKKADUWA BEACH RESORT PLC

HNB ASSURANCE PLC

HVA FOODS PLC

J

JANASHAKTHI INSURANCE COMPANY PLC

JOHN KEELLS HOLDINGS PLC Hot

JOHN KEELLS HOTELS PLC

L

LANKA ASHOK LEYLAND PLC

LANKA IOC PLC

LANKEM CEYLON PLC

LANKEM DEVELOPMENTS PLC

LAUGFS GAS PLC

LAUGFS POWER LIMITED

LOLC FINANCE PLC

LOLC HOLDINGS PLC

LUCKY LANKA MILK PROCESSING COMPANY PLC

M

MELSTACORP PLC

N

NATIONAL DEVELOPMENT BANK PLC

NATION LANKA FINANCE PLC

NESTLE LANKA PLC

O

ORIENT FINANCE PLC

OVERSEAS REALTY (CEYLON) PLC

P

PANASIAN POWER PLC

PEOPLE'S LEASING & FINANCE PLC

PIRAMAL GLASS CEYLON PLC

PRIME FINANCE PLC

R

RAIGAM WAYAMBA SALTERNS PLC

RENUKA AGRI FOODS PLC

RENUKA CAPITAL PLC

RENUKA HOLDINGS PLC

RICHARD PIERIS AND COMPANY PLC

RICHARD PIERIS EXPORTS PLC Hot

ROYAL CERAMICS PLC

S

SAMPATH BANK PLC

SEYLAN BANK PLC

SIERRA CABLES PLC

SINGHE HOSPITALS PLC Hot

SMB LEASING PLC

SOFTLOGIC HOLDINGS PLC

SOFTLOGIC LIFE INSURANCE PLC

SRI LANKA TELECOM PLC

SWISSTEK (CEYLON) PLC Hot

T

TEEJAY LANKA PLC

TESS AGRO PLC

THREE ACRE FARMS PLC

TOKYO CEMENT COMPANY (LANKA) PLC Hot

U

UNION BANK OF COLOMBO PLC

V

VALLIBEL FINANCE PLC

VALLIBEL ONE PLC Hot

VALLIBEL POWER ERATHNA PLC

W

WASKADUWA BEACH RESORT PLC


You are not connected. Please login or register

FINANCIAL CHRONICLE™ » FINANCIAL CHRONICLE™ » SEC lifts sales ban on brokers, relaxes credit restrictions

SEC lifts sales ban on brokers, relaxes credit restrictions

Go to page : 1, 2, 3  Next

Go down  Message [Page 1 of 3]

Marketinvest

Marketinvest
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
Sri Lanka’s Securities and Exchange Commission (SEC), under its new chairman Nalaka Godahewa, on Monday overturned rules enforced by the previous regime, lifting credit restrictions and removing a time-bound ban on brokers selling their personal investments. The decisions are effective from Tuesday, October 9.
The SEC in a media statement, after its commissioners met brokers, decided to “remove the restriction on executive directors, employees, their spouses and their nominees of all licensed stock brokers and stock dealers from selling listed shares purchased from the secondary market for a period of six months from the date of purchase.”
The Commission also decided to lift the upper limit of 20 per cent imposed on the price of transactions carried out on the crossings board of the Colombo Stock Exchange and to re-establish the status quo that existed previously in the automated trading rules
It also decided to, “amend the net capital computation in order to relax the credit granted by stock broking companies to their clients. In that the stock brokers are now permitted to extend credit to their clients three times the adjusted net capital (ie net capital minus 50 per cent of fixed assets) without having to deductoutstanding debtors from net capital. However the stock brokers are required to compute the net capital adjusting all unsettled purchase transations (over T+3) to reflect the excess of cost over market value. Further stock brokers are required to ensure strict compliance with all rules and regulations applicable for extension of credit.”
Earlier the Commissioner under the chair of Thilak Karunaratne, who resigned under pressure, enforced these rules aimed at reducing alleged insider dealings and market manipulation.
- Ends- Sunday times

hawklk


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
WoW.....and affraid

Marketinvest

Marketinvest
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
Wack ya. Market wins we win

Whitebull


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
අනේ කාලේ වනේ වාසේ කිව්වලු What a Face



Last edited by Whitebull on Mon Oct 08, 2012 10:55 pm; edited 1 time in total

Marketinvest

Marketinvest
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
Probably 6000 or more tomorrow

SilverHawk


Equity Analytic
Equity Analytic
My broker was so confidence about the decision over their proposal.
As per him, market will further appreciate from tomorrow to a new height.

Whitebull


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
@Marketinvest wrote:Sri Lanka’s Securities and Exchange Commission (SEC), under its new chairman Nalaka Godahewa, on Monday overturned rules enforced by the previous regime, lifting credit restrictions and removing a time-bound ban on brokers selling their personal investments. The decisions are effective from Tuesday, October 9.
The SEC in a media statement, after its commissioners met brokers, decided to “remove the restriction on executive directors, employees, their spouses and their nominees of all licensed stock brokers and stock dealers from selling listed shares purchased from the secondary market for a period of six months from the date of purchase.”
The Commission also decided to lift the upper limit of 20 per cent imposed on the price of transactions carried out on the crossings board of the Colombo Stock Exchange and to re-establish the status quo that existed previously in the automated trading rules
It also decided to, “amend the net capital computation in order to relax the credit granted by stock broking companies to their clients. In that the stock brokers are now permitted to extend credit to their clients three times the adjusted net capital (ie net capital minus 50 per cent of fixed assets) without having to deductoutstanding debtors from net capital. However the stock brokers are required to compute the net capital adjusting all unsettled purchase transations (over T+3) to reflect the excess of cost over market value. Further stock brokers are required to ensure strict compliance with all rules and regulations applicable for extension of credit.”
Earlier the Commissioner under the chair of Thilak Karunaratne, who resigned under pressure, enforced these rules aimed at reducing alleged insider dealings and market manipulation.
- Ends- Sunday times

Could you please mention the direct link to the original article ?

Jana

Jana
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
@Marketinvest wrote:Probably 6000 or more tomorrow


Every thing Short Term profit stock ....Ha haa .... lol!

buy anything you want lol! lol!

Marketinvest

Marketinvest
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
@Whitebull wrote:
@Marketinvest wrote:Sri Lanka’s Securities and Exchange Commission (SEC), under its new chairman Nalaka Godahewa, on Monday overturned rules enforced by the previous regime, lifting credit restrictions and removing a time-bound ban on brokers selling their personal investments. The decisions are effective from Tuesday, October 9.
The SEC in a media statement, after its commissioners met brokers, decided to “remove the restriction on executive directors, employees, their spouses and their nominees of all licensed stock brokers and stock dealers from selling listed shares purchased from the secondary market for a period of six months from the date of purchase.”
The Commission also decided to lift the upper limit of 20 per cent imposed on the price of transactions carried out on the crossings board of the Colombo Stock Exchange and to re-establish the status quo that existed previously in the automated trading rules
It also decided to, “amend the net capital computation in order to relax the credit granted by stock broking companies to their clients. In that the stock brokers are now permitted to extend credit to their clients three times the adjusted net capital (ie net capital minus 50 per cent of fixed assets) without having to deductoutstanding debtors from net capital. However the stock brokers are required to compute the net capital adjusting all unsettled purchase transations (over T+3) to reflect the excess of cost over market value. Further stock brokers are required to ensure strict compliance with all rules and regulations applicable for extension of credit.”
Earlier the Commissioner under the chair of Thilak Karunaratne, who resigned under pressure, enforced these rules aimed at reducing alleged insider dealings and market manipulation.
- Ends- Sunday times

Could you please mention the direct link to the original article ?

here u go mate
http://www.sundaytimes.lk/index.php?option=com_content&view=article&id=25236:sec-lifts-sales-ban-on-brokers-relaxes-credit-restrictions&catid=77:news&Itemid=563

sriranga

sriranga
Co-Admin
*SEC lifts upper limit for crossings, Nirvana for pump-and-dumpers warn analysts
*Restriction on broker transactions lifted, good for monitoring


The Securities and Exchange Commission yesterday (08) decided to relax broker credit restrictions but some brokers are concerned about the new move, especially with regard to credit as it increases systemic risk.

Releasing a statement SEC Acting Director General Prof. Hareendra Dissabandara said the commission having met yesterday decided to "amend the Net Capital computation in order to relax the credit granted by stock brokering companies to their clients. In that the stock brokers are now permitted to extend credit to their clients three times the adjusted Net Capital (i.e. Net Capital minus 50 percent of fixed assets) without having to deduct outstanding debtors from net capital. However, the stock brokers are required to compute the Net Capital adjusting all unsettled purchase transactions (T+3) to reflect the excess of cost over market value. Further stock brokers are required to ensure strict compliance with all rules and regulations applicable to the extension of credit".

Commenting on this new ruling, market analysts pointed out that in 2010 the SEC made a decision in the interest of reducing counterparty risk to ring fence the lending activities of a broker from its transactional functions. This was subsequently modified due to pressure from various quarters in permitting brokers to give short term credit – less than 30 days and any credit extended for longer periods necessitate a haircut on the amount outstanding with a 100% haircut in 120 days.

"The current ruling does away with all safeguards, in other words brokers are now permitted to give credit for any period of time. This further heightens systemic risk and does not bode well for improving investor confidence," one analyst said not wanting to be named.

The SEC will also "lift the upper limit of 20 percent imposed on the price of transactions carried out on the crossings board of the Colombo Stock Exchange and re-establish the status quo that existed previously in the automated trading rules".

"This is nirwana to pump and dumpers – it is a quite literally a license to fleece for pump and dumpers. A market price is a reflection of the price discovery process albeit sometimes it is weak thus the former rule provides a 20% range. One fails to reconcile why one would want to rescind this, what is the motive?" a market analyst asked.

The SEC will also "lift the restriction imposed on executive directors, employees, their spouses and their nominees of all licensed stock brokers and stock dealers from selling listed shares purchased from the secondary market for a period of six months from the date of purchase".

According to market analysts the former rule was a knee jerk reaction emanating from the NSB fiasco.

Banning something outright will simply incentivize someone to use a nominee to trade thus rescinding this rule is a move in the right direction for it puts an onus on the internal compliance of a firm to monitor their staff trades, therefore this change is a welcome move, analysts said.

"Generally a directive issued by a regulator it directed to the regulatee, in this case it should be to the Colombo Stock Exchange to be taken up through its rule making process and should include a detailed analysis of the thought process that went into establishing it, in this case the commissions’ actions are being disseminated via a press announcement, there is no explanation as to the thought process and the directive is with immediate effect – this is highly unusual," a broker pointed out.
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=63322

http://sharemarket-srilanka.blogspot.co.uk/

Whitebull


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
@Marketinvest wrote:
@Whitebull wrote:
@Marketinvest wrote:Sri Lanka’s Securities and Exchange Commission (SEC), under its new chairman Nalaka Godahewa, on Monday overturned rules enforced by the previous regime, lifting credit restrictions and removing a time-bound ban on brokers selling their personal investments. The decisions are effective from Tuesday, October 9.
The SEC in a media statement, after its commissioners met brokers, decided to “remove the restriction on executive directors, employees, their spouses and their nominees of all licensed stock brokers and stock dealers from selling listed shares purchased from the secondary market for a period of six months from the date of purchase.”
The Commission also decided to lift the upper limit of 20 per cent imposed on the price of transactions carried out on the crossings board of the Colombo Stock Exchange and to re-establish the status quo that existed previously in the automated trading rules
It also decided to, “amend the net capital computation in order to relax the credit granted by stock broking companies to their clients. In that the stock brokers are now permitted to extend credit to their clients three times the adjusted net capital (ie net capital minus 50 per cent of fixed assets) without having to deductoutstanding debtors from net capital. However the stock brokers are required to compute the net capital adjusting all unsettled purchase transations (over T+3) to reflect the excess of cost over market value. Further stock brokers are required to ensure strict compliance with all rules and regulations applicable for extension of credit.”
Earlier the Commissioner under the chair of Thilak Karunaratne, who resigned under pressure, enforced these rules aimed at reducing alleged insider dealings and market manipulation.
- Ends- Sunday times

Could you please mention the direct link to the original article ?

here u go mate
http://www.sundaytimes.lk/index.php?option=com_content&view=article&id=25236:sec-lifts-sales-ban-on-brokers-relaxes-credit-restrictions&catid=77:news&Itemid=563

Thanks friend.What will happen tomorrow affraid

sahan8896


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
http://www.ft.lk/2012/10/09/sec-gives-fresh-boost-to-bourse/

smallville

smallville
Associate Director - Equity Analytics
Associate Director - Equity Analytics
The other decision was to lift restrictions imposed on executive directors, employees, their spouses and nominees of stock brokers and dealers from selling listed shares purchased from the secondary market for a period of six months from the date of purchase.

What a showstopper..

Now face the next level of manipulation... Thanks SEC Wink

Now brokers can dump all their crap on retailers..

bandara 123


Manager - Equity Analytics
Manager - Equity Analytics
I really like this. Mkt should be less restrictions, but controlls should be their. taking credit is the risk of the purchaser and giving credits is the risk of the brokers firm.Both parties should manage it, i mean we can't do anything for that.

Small no body can dump shares on anybody. that is totally wrong. when buying shares the buyers should have a clear idea of what is he doing. if it is not the case what shall we do for it.

Now take this NSB TFC deal. broker restrictions suddenly came in to effect because of that. Just think about the genuine people, now that thay can't do a transaction withing six months time period. Now who is responsible for that blunder (TFC NSB) without taking thoes people for ......... what is the point of putting a rulling to the mkt.

think wisely. i like this.........

smallville

smallville
Associate Director - Equity Analytics
Associate Director - Equity Analytics
@bandara 123 wrote:
Small no body can dump shares on anybody. that is totally wrong. when buying shares the buyers should have a clear idea of what is he doing. if it is not the case what shall we do for it.

You're absolutely correct abt a market being without restriction.. I also like that.. But we have few morons here who wills top at nothing until they make the ppl fools. They have the support of their brokers too..

So do buyers have a clear idea of what they buy? I do not think so.. Why? Most buyers buy what brokers ask them to buy and most brokers will advice to buy crap cuz its the next big thing to boom Smile

@bandara 123 wrote:

Now take this NSB TFC deal. broker restrictions suddenly came in to effect because of that. Just think about the genuine people, now that thay can't do a transaction withing six months time period. Now who is responsible for that blunder (TFC NSB) without taking thoes people for ......... what is the point of putting a rulling to the mkt.

think wisely. i like this.........

This was an eye opener imo.... Even a ruling couldn't be used to outdone deals like these. Its the shady nature of the directors involved..
Can any one straighten the tail of a dog? Cool

Stop at reversing the deal would not be suffice.. These crooks to be brought to justice and prosecuted for their wrong doing..

Bandara, in mature market, i.e. Canada, directors are not allowed to buy their own company shares.. There are specific authorities to sought for if in need.. But ours do not have such that's why our guys play games with these..
What directors have to do is; Buy a considerable amt and announce that they bought it.. Then our retailers rally around to own a piece of it.. This brings the demand and hence the price action starts.. While our retailers are busy collecting it, the director announces his exit tongue

sanju351

sanju351
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
@bandara 123 wrote:I really like this. Mkt should be less restrictions, but controlls should be their. taking credit is the risk of the purchaser and giving credits is the risk of the brokers firm.Both parties should manage it, i mean we can't do anything for that.

Small no body can dump shares on anybody. that is totally wrong. when buying shares the buyers should have a clear idea of what is he doing. if it is not the case what shall we do for it.

Now take this NSB TFC deal. broker restrictions suddenly came in to effect because of that. Just think about the genuine people, now that thay can't do a transaction withing six months time period. Now who is responsible for that blunder (TFC NSB) without taking thoes people for ......... what is the point of putting a rulling to the mkt.

think wisely. i like this.........

Totally agree with you ..
Nobody force you to buy ..we buy thinking of profits ..some times we lose ..thats the part and parcel of the game ..

Or else you can be a smart invester ..after a careful research you can get in to securities ..
Am sure we will go to new hights now and if you invest wisely all can be winners ..

Play safe ...

Thank you Mr Godahewa & all those who swet for this startin g from Mr.Dilith Jayaweera .. flower flower flower

aj


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
Let's all contribute to the lottery to gift a car or make another pool in the broker hut owners backyard as Thilak said.

sanju351

sanju351
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
affraid affraid affraid affraid affraid
@aj wrote:Let's all contribute to the lottery to gift a car or make another pool in the broker hut owners backyard as Thilak said.

wiki


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
@bandara 123 wrote:I really like this. Mkt should be less restrictions, but controlls should be their. taking credit is the risk of the purchaser and giving credits is the risk of the brokers firm.Both parties should manage it, i mean we can't do anything for that.

Small no body can dump shares on anybody. that is totally wrong. when buying shares the buyers should have a clear idea of what is he doing. if it is not the case what shall we do for it.

Now take this NSB TFC deal. broker restrictions suddenly came in to effect because of that. Just think about the genuine people, now that thay can't do a transaction withing six months time period. Now who is responsible for that blunder (TFC NSB) without taking thoes people for ......... what is the point of putting a rulling to the mkt.

think wisely. i like this.........

When you cant regulate.. you need restriction ..that is the case in SL because all are connected

It is good to have a free market.. Very Happy but uncontrolled credit will bring a systematic risk.. it is not only risk the borrower and the lender


aj


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
the stock brokers are now permitted to extend credit to their clients three times the adjusted Net Capital (i.e. Net Capital minus 50 percent of fixed assets) without having to deduct outstanding debtors from net capital.
Does it mean if the broker borrow 10 billion from some bank it's not deducted from the capital but the burrowed money pumps up the ability to give more credit without it the debt money deducted from the credit limit? Sounds like Godahewa have given limitless credit.

Sponsored content


Back to top  Message [Page 1 of 3]

Go to page : 1, 2, 3  Next

Permissions in this forum:
You cannot reply to topics in this forum