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.
FINANCIAL CHRONICLE™

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

LISTED COMPANIES

Submit Post



Poll

Can there be another Covid-19 wave in Sri Lanka?

‘Ten point plan’: no kidding Vote_lcap68%‘Ten point plan’: no kidding Vote_rcap 68% [ 178 ]
‘Ten point plan’: no kidding Vote_lcap18%‘Ten point plan’: no kidding Vote_rcap 18% [ 47 ]
‘Ten point plan’: no kidding Vote_lcap13%‘Ten point plan’: no kidding Vote_rcap 13% [ 35 ]

Total Votes : 260

STOCK MARKET TRAINING
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


CONATCT US


Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer



Latest topics

» DISTILLERIES COMPANY OF SRI LANKA PLC (DIST.N0000)
by Bakkabwoi Today at 11:07 pm

» CLC placed on a Slingshot . . . !!!
by Sapudev Today at 10:58 pm

» ELPL-WATA-UDPL
by Maharaja Today at 10:45 pm

» Water For All - CIND
by LHW Today at 10:22 pm

» The fate of NIFL .. CLC .. LOFC under LOCH
by Equity Win Today at 9:59 pm

» When you form opinions without facts, and act upon them, you put yourself at a disadvantage.
by Asoka Samarakone Today at 9:38 pm

» Central Bank Governor Ajith Cabraal given Cabinet Minister status & ranked 5th in New Precedence of the Government
by ADVENTUS Today at 8:26 pm

» WATAWALA PLANTATION PLC (WATA.N0000)
by Niwa Today at 8:20 pm

» TOKYO CEMENT COMPANY (LANKA) PLC
by ADVENTUS Today at 6:34 pm

» CDB Earnings
by Promoney Today at 5:27 pm

» EXPO/BILL/LOLC
by blindhog Today at 3:34 pm

» LOFC AND CLC Target Price??
by Shivanthini Today at 3:25 pm

» Palm Oil supply not enough to meet global demand.
by skyfall Today at 1:43 pm

» CLC - Bull & Bear LOCKED HORNS - can blast at any time.
by Equity Win Today at 1:29 pm

» THE COLOMBO FORT LAND & BUILDING PLC (CFLB.N0000)
by skyfall Today at 1:25 pm

» LLUB New Valuation for Price appreciation
by samansilva Today at 1:12 pm

» ASPI 10000, Still a Long Way to Go
by ResearchMan Today at 12:56 pm

» Palm oil, rubber prices flat. Let’s go for tea
by ResearchMan Today at 12:55 pm

» SUNSHINE HOLDINGS PLC (SUN.N0000)
by ErangaDS Today at 12:46 pm

» LANKA ALUMINIUM INDUSTRIES PLC (LALU.N0000)
by bkasun Today at 12:38 pm

EXPERT CHRONICLE™

MARKET CHAT


CHRONICLE™ ANALYTICS


ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

LATEST TWEETS

You are not connected. Please login or register

FINANCIAL CHRONICLE™ » DAILY CHRONICLE™ » ‘Ten point plan’: no kidding

‘Ten point plan’: no kidding

3 posters

Go down  Message [Page 1 of 1]

1‘Ten point plan’: no kidding Empty ‘Ten point plan’: no kidding Sun Jan 20, 2013 11:59 pm

sriranga

sriranga
Co-Admin
SEC’s new set of priorities spelt out in a plan are nice, but the challenges it faces are far greater than represented in the 10 key tasks

By Shamindra Kulamannage

It’s encouraging, despite the challenges besieging it, that the SEC has not lost its sense of humor. On the home page of its website against an orderly school of fish framed against turquoise water it claims to be "regulating with a firm hand and reinforcing investor confidence, we have led the way in creating and maintaining a disciplined and orderly securities market." Anyone who had an eye on the unfolding drama in the last two years, when two SEC chairpersons had to leave office, may be excused for their hysterical fits of laughter. That and other statements exemplifying the agency’s high calling like, "We protect investors, offer security and operate a securities market based on fairness to facilitate a level playing field to all stakeholders," just goes to demonstrate the disconnect between the securities regulator’s perceived role and reality.

In the whole mêlée that undermined the securities regulator a number of well connected individuals intent in bending the stock market to their will and their crummy stockbroker friends established an unholy primacy with the SEC.

So when the regulator unveiled a 10 point plan to develop capital markets, the ambivalence of serious market participants to the rhetoric shouldn’t come as a surprise. There are two reasons for skepticism. Firstly the market has seen too many of these plans and no action whatsoever in over a decade for one to be taken seriously now. Secondly the challenge facing Sri Lanka’s capital markets are far more serious and of a more fundamental nature than can be addressed by the proposed plan.

For almost a century since the Colombo Brokers Association started trading shares in companies with limited liability, investment success was more about knowing someone privy to inside information than it was about a process of rigorous analysis. Some analysts point out that not much has changed despite the setting up of a regulator whose sole purpose is to ensure ‘that securities can be issued and traded in a fair manner’. None other than the former SEC Chairman Tilak Karunaratne, who had a front row seat to the on goings in Sri Lanka’s tiny capital market, described it as a ‘den of thieves’.

In a plan unveiled in partnership with the Colombo Stock Exchange, the securities regulator has undertaken afresh to implement pretty much every single policy that’s evaded action so far like amending its act – hopefully allowing it to impose sanctions commensurate with the seriousness of the crimes committed -, strengthen risk management at brokerages and such like proposals. However this comes in the backdrop of the agency having given in to demands by some brokers for easing rules allowing a freer flow of credit.

To regain lost confidence the regulator however should urgently turn its attention to its core challenges. One former SEC Chairman has clearly articulated the scale of that challenge. It needs to demonstrate the agency’s independence by perusing with rigour investigations against market manipulators. It would indeed turn to pulp its existing act and slide the agency in to further ridicule if investigations draw a blank or drag on any longer than they already have.

The prosperity of stockholders is beyond the regulators ability to ensure. If listed companies thrive because the economy grows, the country is well governed, and laws and regulations are respected, then stock holders will thrive because higher profits may push up share prices. Often this basic logic is forgotten when regulators and brokers promote the market as some get rich quick scheme.

In its 10 point plan SEC proposes encouraging more listings, attracting new funds, developing the corporate debt market, encouraging mutual funds as a conduit for mobilizing savings of less sophisticated investors and developing new products. Many of these will be contingent on a level playing field being available. Otherwise no local investor will feel safe in the market and no foreign portfolio fund will care to even look at it.

Instead of enduring the ignominies of the population, the SEC Chairman, its commissioners and senior staff should urgently address the fundamental challenges it faces. Or else the statements on the SEC website articulating its high calling, will remain comic relief in a market left ravaged by crooks.

(Courtesy: Echelon, Sri Lanka’s latest business magazine available for sale at Keells Supermarkets and bookshops. Echelon, published monthly, covers in-depth Sri Lanka’s most successful businesses, examining their winning strategies and profiling their leaders. It aims to set the benchmark for business reporting among magazines.)
http://island.lk/index.php?page_cat=article-details&page=article-details&code_title=70794

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

2‘Ten point plan’: no kidding Empty Re: ‘Ten point plan’: no kidding Mon Jan 21, 2013 10:15 am

Sidath

Sidath
Manager - Equity Analytics
Manager - Equity Analytics
the 10 point plan is nothing but the old capital market master plan which the SEC talked about years ago.

If there is a focused attempt at implementing them I'm happy, but the fundamental issue affecting the CSE is confidence.

3‘Ten point plan’: no kidding Empty Re: ‘Ten point plan’: no kidding Tue Jan 22, 2013 5:22 pm

hettihewa


Senior Equity Analytic
Senior Equity Analytic
@Sidath wrote:the 10 point plan is nothing but the old capital market master plan which the SEC talked about years ago.

If there is a focused attempt at implementing them I'm happy, but the fundamental issue affecting the CSE is confidence.

You are absolutely right Sidath . When 10 point action plan was launched SEC chairman openly told the press that it is nothing new but a focused attempt to implement best ideas of the industry. What Sri Lanka has always lacked is implementation effort. So we must appreciate this effort rather than being critical.

Those who do absolutely nothing by themselves are the best critics of everything.

Sponsored content


Back to top  Message [Page 1 of 1]

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