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?

Banks Rights Issues has started Vote_lcap68%Banks Rights Issues has started Vote_rcap 68% [ 178 ]
Banks Rights Issues has started Vote_lcap18%Banks Rights Issues has started Vote_rcap 18% [ 47 ]
Banks Rights Issues has started Vote_lcap13%Banks Rights Issues has started 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

» PEOPLE'S INSURANCE PLC (PINS.N0000)
by Ekanayake90 Today at 12:52 pm

» Lanka Milk Foods - LMF
by buddikasmart Today at 11:58 am

» HEMAS HOLDINGS PLC (HHL.N0000)
by Nandun Today at 11:35 am

» In the vicinity listing of LOCH – “LOLC CEYLON”
by Sapudev Today at 10:45 am

» LOFC AND CLC Target Price??
by bizstock Today at 9:55 am

» Commodities boom, tourism hopes fuel South-east Asia stock rally
by ResearchMan Today at 6:15 am

» NP IN TWEETER
by bizstock Today at 2:29 am

» Water For All - CIND
by LHW Yesterday at 9:40 pm

» CFLB.......COLOMBO FORT LAND PLC
by skyfall Yesterday at 2:42 pm

» KOTAGALA PLANTATION PLC (KOTA.N0000)
by Equity Win Yesterday at 1:26 pm

» LIOC WILL HIT TO 38+++
by Wickyz Yesterday at 12:24 pm

» Country full open keep eye on llub
by rukshan1234 Yesterday at 11:21 am

» EXPOLANKA HOLDINGS PLC (EXPO.N0000)
by samaritan Yesterday at 10:57 am

» Fertilizer issue over !! Buy plantations
by Maharaja Yesterday at 10:36 am

» Today is the Best - Day to buy CLC ..!
by Sapudev Yesterday at 10:11 am

» Good morning everyone... Today is the day...
by Vishwanarth Yesterday at 9:39 am

» EXPO/BILL/LOLC
by arun.cse Yesterday at 8:59 am

» TIME TO PICK DOLLAR EARNING AND DIVIDEND PAYING COMPANIES? :D
by cseguide Thu Oct 14, 2021 10:37 pm

» SUNSHINE HOLDINGS PLC (SUN.N0000)
by LHW Thu Oct 14, 2021 9:47 pm

» BIL BEST BUY
by Niwa Thu Oct 14, 2021 8:09 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™ » CORPORATE CHRONICLE™ » Banks Rights Issues has started

Banks Rights Issues has started

5 posters

Go down  Message [Page 1 of 1]

1Banks Rights Issues has started Empty Banks Rights Issues has started Tue Mar 07, 2017 8:30 am

jayathu


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
PABC suceessfully did it, now commercial bank is doing it. Soon HNB, SAMP, DFCC and NDB will do it to raise funds for future growth and further capitalize the banks.

Raising funds through debentures is not an option at the moment due to tax changes. Now only option for banks is to find a private placement or go for a right issue.

2Banks Rights Issues has started Empty Re: Banks Rights Issues has started Tue Mar 07, 2017 10:03 am

hettdas

hettdas
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
Jayathu , What is the tax imposed on Debentures recently?

3Banks Rights Issues has started Empty Re: Banks Rights Issues has started Tue Mar 07, 2017 10:19 am

jayathu


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
tax exception given fr corporate is gone. Earlier we weren't liable to pay taxes on debenture interest earned.

4Banks Rights Issues has started Empty Re: Banks Rights Issues has started Tue Mar 07, 2017 10:46 am

soileconomy

soileconomy
Vice President - Equity Analytics
Vice President - Equity Analytics
In an environment where interest rates are going up rights issue is a good option.if valuable shares are going for rights issues ,overall market may go down.

5Banks Rights Issues has started Empty Re: Banks Rights Issues has started Tue Mar 07, 2017 12:18 pm

hettdas

hettdas
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
what is the tax percentage for interest of debentures per annum?
Also will this tax effect previous debentures listed before budget?

6Banks Rights Issues has started Empty Re: Banks Rights Issues has started Tue Mar 07, 2017 12:35 pm

jayathu


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
@hettdas i work for an insurance company in fund management side. For us corporate tax is 28%. Until now our debenture interest income is not liable for that, but now it's liable. Corporate tax varies according to the different sectors.

So now if we invest in a debenture which gives 14%, our nett return will be 10.08%. So it'll be very unattractive to invest in debentures. Under current T'Bill and T'Bond rate, if a company issues 3yr debenture, they must at least give 19%. Then net return for us is 13.68%, which is comparable for 3yr T'Bond rate. AER might vary according coupon paying method.

7Banks Rights Issues has started Empty Re: Banks Rights Issues has started Tue Mar 07, 2017 1:25 pm

hettdas

hettdas
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
@jayathu wrote:@hettdas i work for an insurance company in fund management side. For us corporate tax is 28%. Until now our debenture interest income is not liable for that, but now it's liable. Corporate tax varies according to the different sectors.

So now if we invest in a debenture which gives 14%, our nett return will be 10.08%. So it'll be very unattractive to invest in debentures. Under current T'Bill and T'Bond rate, if a company issues 3yr debenture, they must at least give 19%. Then net return for us is 13.68%, which is comparable for 3yr T'Bond rate. AER might vary according coupon paying method.  



Thank you Jayathu. Lets see after April. We can check exact percentage after April since all budget decisions would implement after April 1st.

8Banks Rights Issues has started Empty Re: Banks Rights Issues has started Sat Mar 11, 2017 11:04 pm

anges


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
seems like goverment needs money badly ! may be 2019 will be year ??????????????

9Banks Rights Issues has started Empty Re: Banks Rights Issues has started Sun Mar 12, 2017 2:11 pm

worthiness


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Is debenture interest subject to 28% tax?

10Banks Rights Issues has started Empty Re: Banks Rights Issues has started Mon Mar 13, 2017 8:29 am

jayathu


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
Yep, still there's some confusion can the existing debentures we have invested can be or cannot be taxed.

Sponsored content


Back to top  Message [Page 1 of 1]

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