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FINANCIAL CHRONICLE™ » DAILY CHRONICLE™ » 8 stockbroking firms in crisis ?

8 stockbroking firms in crisis ?

+10
stockmania
worthiness
gamaya
D.G.Dayaratne
yellow knife
Leon
prabath
Gaudente
dudi
maalinda
14 posters

Go down  Message [Page 1 of 1]

18 stockbroking firms in crisis  ?  Empty 8 stockbroking firms in crisis ? Wed Dec 11, 2013 2:04 pm

maalinda


Manager - Equity Analytics
Manager - Equity Analytics
I saw this article in Srilankamirror and deleted ( don't know how reliable sources are these ).

What they mean by " Cease Operations ? " what happens to excising customers ?

***********************

Certain stockbroking firms in the Colombo are facing a capital crisis, reports say.

According to sources, at least 08 out of the 29 active stockbroking firms are facing a critical capital crisis.

Speaking to media, stockbrokers, regulators as well as investors have complained that chiefs of certain companies are shifting towards unethical practices, even violating stock market regulations, in a bid to recover their marginal lendings.

According to reports, the crisis ridden firms are even unable to meet the minimum capital limit. (The minimum capital limit for a stockbroking firm is Rs. 35 million.)

The crisis has occured in a backdrop of low turnover conditions in the stock market, it is said.

Meanwhile, it is revealed that a certain group of stockbrokers are prepared to request the Securities and Exchange Commission of Sri Lanka (SEC) to allow them to cease operations (without cancelling permits) and to allow them to resume once the stock market has retained its usual conditions.

(It is said that such measures were taken in Karachi and Culcutta stock markets as well)

Such measures have said to help weak stockbroking companies to overcome an unbalanced balance sheet and while retaining their permits.

In 2010, a stock market growth of 96% was seen while a growth of 100% was seen in 2011.

28 stockbroking firms in crisis  ?  Empty Re: 8 stockbroking firms in crisis ? Wed Dec 11, 2013 2:13 pm

dudi


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
malinda,can you please reveal the names of those brokering firms for the benefit of our members?

38 stockbroking firms in crisis  ?  Empty Re: 8 stockbroking firms in crisis ? Wed Dec 11, 2013 2:21 pm

Gaudente


Manager - Equity Analytics
Manager - Equity Analytics
it's quite possible , turnover is minimal and the index is going nowhere ... nor you can hope for a change soon, as the market is horribly manipulated (biggest stock like Ceylon Tobacco quote a laughable multiple of their book value, clearly supported by someone who put them at guarantee and is unable to pay the debt back or to sell them at current inflated price).
So as you can't expect anything good from the stock market the only solution is to develop a real secondary debentures market allowing also the small fishes to play and competing with fixed deposits. But it seems that the only brokers having a debenture trade license are First Capital and JB Securities  Neutral

48 stockbroking firms in crisis  ?  Empty Re: 8 stockbroking firms in crisis ? Wed Dec 11, 2013 2:48 pm

dudi


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
malinda,can you please reveal the names of those brokering firms for the benefit of our members?

58 stockbroking firms in crisis  ?  Empty Re: 8 stockbroking firms in crisis ? Wed Dec 11, 2013 4:56 pm

prabath


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
@Gaudente wrote:it's quite possible , turnover is minimal and the index is going nowhere ... nor you can hope for a change soon, as the market is horribly manipulated (biggest stock like Ceylon Tobacco quote a laughable multiple of their book value, clearly supported by someone who put them at guarantee and is unable to pay the debt back or to sell them at current inflated price).
So as you can't expect anything good from the stock market the only solution is to develop a real secondary debentures market allowing also the small fishes to play and competing with fixed deposits. But it seems that the only brokers having a debenture trade license are First Capital and JB Securities  Neutral
Your view is somewhat correct.Above scenario of broker firms crashing will never happen.Right now market and most shares are manipulated down.We had bigger concerns earlier but market stood up and gave profits.It will happen again and it's not far away.

68 stockbroking firms in crisis  ?  Empty Re: 8 stockbroking firms in crisis ? Wed Dec 11, 2013 10:39 pm

Leon


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
So we all are in hot water. advisers, investors, traders no difference. Very Happy Very Happy Very Happy Very Happy Very Happy 

78 stockbroking firms in crisis  ?  Empty Re: 8 stockbroking firms in crisis ? Thu Dec 12, 2013 8:34 am

yellow knife


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
I think some one who knows the names should come with such broker firms in trouble. We must be able to call a spade a spade. That culture should be developed in this kind of web forums as that is not available in print media.
Naming and Shaming is one nice way of disciplining a whole industry. i wonder why SEC is not doing that.

88 stockbroking firms in crisis  ?  Empty Re: 8 stockbroking firms in crisis ? Thu Dec 12, 2013 11:03 am

D.G.Dayaratne


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
"KUMBALA MASHI KEWANAM DUKA VIDAPAN BLALO"
(Muslim Trader in Rural Sri lanka)
This is famous saying among rural people

Brokers are compelled to suffer for their misconduct in SL Stock market

98 stockbroking firms in crisis  ?  Empty Re: 8 stockbroking firms in crisis ? Thu Dec 12, 2013 11:51 am

gamaya


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
https://www.srilankamirror.com/news/12266-8-stockbroking-firms-in-crisis

8 stockbroking firms in crisis
Published on Wednesday, 11 December 2013 09:33
Certain stockbroking firms in the Colombo are facing a capital crisis, reports say.

According to sources, at least 08 out of the 29 active stockbroking firms are facing a critical capital crisis.

Speaking to media, stockbrokers, regulators as well as investors have complained that chiefs of certain companies are shifting towards unethical practices, even violating stock market regulations, in a bid to recover their marginal lendings.

According to reports, the crisis ridden firms are even unable to meet the minimum capital limit. (The minimum capital limit for a stockbroking firm is Rs. 35 million.)

The crisis has occured in a backdrop of low turnover conditions in the stock market, it is said.

Meanwhile, it is revealed that a certain group of stockbrokers are prepared to request the Securities and Exchange Commission of Sri Lanka (SEC) to allow them to cease operations (without cancelling permits) and to allow them to resume once the stock market has retained its usual conditions.

(It is said that such measures were taken in Karachi and Culcutta stock markets as well)

Such measures have said to help weak stockbroking companies to overcome an unbalanced balance sheet and while retaining their permits.

In 2010, a stock market growth of 96% was seen while a growth of 100% was seen in 2011.
(Source : deleted)





"Certain stockbroking firms in the Colombo are facing a capital crisis, reports say.

According to sources, at least 08 out of the 29 active stockbroking firms are facing a critical capital crisis."

The reason would probably be that these brokers have not forced sold in order to get the interest money, and now the clients are wiped out completely and the accounts have minus cash balance.


"Such measures have said to help weak stockbroking companies to overcome an unbalanced balance sheet and while retaining their permits."

Overcome an Unbalanced balance sheet...?    Question  Laughing Laughing

108 stockbroking firms in crisis  ?  Empty Re: 8 stockbroking firms in crisis ? Thu Dec 12, 2013 12:21 pm

yellow knife


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
UNBALANCED BALANCESHEET pirat Very Happy Very Happy lol! 

118 stockbroking firms in crisis  ?  Empty Re: 8 stockbroking firms in crisis ? Thu Dec 12, 2013 3:50 pm

gamaya


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
I sense there is some real sugarcoated pure shit which is yet to be uncovered to common people.

128 stockbroking firms in crisis  ?  Empty Re: 8 stockbroking firms in crisis ? Thu Dec 12, 2013 7:46 pm

worthiness


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Is the disclosure of such broker companies shielded by legal issues? If not, please bring into light for the benefit of new comers, existing investors & public.

138 stockbroking firms in crisis  ?  Empty Re: 8 stockbroking firms in crisis ? Fri Dec 13, 2013 9:20 am

gamaya


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
"Unbalanced Balance sheet" should be the unrecoverable credit given to now wiped out clients...

How much credit is known only to the privileged few for now..

Which broker firms issued most credit during the boom..?? Make your guess..

148 stockbroking firms in crisis  ?  Empty Re: 8 stockbroking firms in crisis ? Fri Dec 13, 2013 2:09 pm

stockmania

stockmania
Manager - Equity Analytics
Manager - Equity Analytics
2009 manipulation සමයේ සිට හතු පිපෙන්න වගෙ ආපු stockbroking කම්පැනි දැන් වැහෙනවා කියන එක අරුමයක් නෙමේ


කුම්බලා මාලු කෑවනම් විදවපන් බලලෝ  lol!

158 stockbroking firms in crisis  ?  Empty Re: 8 stockbroking firms in crisis ? Wed Dec 18, 2013 9:45 am

gamaya


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
So these broker firms requesting to keep their "unbalanced balance sheet" under wraps until the next batch of newcomers come.

Interestingly lots of these broker firms have their own "investment arm" which have accumulated amazing wealth. (Not to mention proxy accounts of owners)

So have they accumulated this wealth at the expense of the wiped out clients, who have bought some of their recommended shares..??
Anyway isn't there a conflict of interest giving buy recommendations, whilst having your own shares, which u can sell at unusually high prices..??

168 stockbroking firms in crisis  ?  Empty Re: 8 stockbroking firms in crisis ? Wed Dec 18, 2013 10:34 am

Backstage

Backstage
Moderator
Moderator
@gamaya wrote:So these broker firms requesting to keep their "unbalanced balance sheet" under wraps until the next batch of newcomers come.

Interestingly lots of these broker firms have their own "investment arm" which have accumulated amazing wealth. (Not to mention proxy accounts of owners)

So have they accumulated this wealth at the expense of the wiped out clients, who have bought some of their recommended shares..??
Anyway isn't there a conflict of interest giving buy recommendations, whilst having your own shares, which u can sell at unusually high prices..??

That about sums it up me thinks.  Crying or Very sad 

178 stockbroking firms in crisis  ?  Empty Re: 8 stockbroking firms in crisis ? Sat Dec 21, 2013 12:08 am

m2_yapa

m2_yapa
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
@stockmania wrote:2009 manipulation සමයේ සිට හතු පිපෙන්න වගෙ ආපු stockbroking කම්පැනි දැන් වැහෙනවා කියන එක අරුමයක් නෙමේ


කුම්බලා මාලු කෑවනම් විදවපන් බලලෝ  lol!

Could you pls name them for the benefit of our members

188 stockbroking firms in crisis  ?  Empty Re: 8 stockbroking firms in crisis ? Sat Dec 21, 2013 11:35 am

K.Haputantri

K.Haputantri
Co-Admin
My inquiries reveal that almost all market participants face the issue of inability to meet expenditure with the inadequate income they get these days.

However, those who get support from the parent companies can survive and others lobby for increase of fees to meet their ends.

We should strongly resist this lobby for increase of fees because; (a) already fees charged at the CSE is higher than that of other countries, (b) the services provided by them at present are totally inadquate for the fees charged (infact, they should reduce the fees for online clients), (c) inefficiency should not be encouraged at any cost  and also (d) our CSE is so small & not capable of feeding this much of market participants.

What the SEC should do is to encourage them to merge with stronger participants who have parental support.

198 stockbroking firms in crisis  ?  Empty Re: 8 stockbroking firms in crisis ? Tue Dec 24, 2013 9:37 am

gamaya


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
One day in future we will finally discover the consequences of "unbalanced balance sheet"

Until then the brokers and SEC would continue their "ethical best practices"

208 stockbroking firms in crisis  ?  Empty Re: 8 stockbroking firms in crisis ? Tue Dec 24, 2013 11:50 am

Sidath

Sidath
Manager - Equity Analytics
Manager - Equity Analytics
what is stopping them from selling the company to someone with deeper pockets ?

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