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

» CSE - The World's best performer!
by madukp Today at 2:41 pm

» LB Finance PLC (LFIN.0000)
by Gowri123 Today at 2:19 pm

» DIPD/HAYC/HAYL
by EPS Today at 2:08 pm

» A Strong bounce back of ASI is on the cards
by samaritan Today at 1:45 pm

» Is ASPI Overvalued now or heavily undervalued ?
by samaritan Today at 1:32 pm

» Lets try to understand what is happening in the market right now
by Wickyz Today at 11:31 am

» GLAS will be winner with Super Gain.
by jason12 Today at 10:11 am

» Anyone attended AGM?
by Mr. X Today at 8:54 am

» EXPOLANKA HOLDINGS PLC (EXPO.N0000)
by Gowri123 Today at 12:05 am

» Prominent Investors of the colombo stock market
by samaritan Yesterday at 6:06 pm

» ACL post share split trading and the future potential
by sheildskye Yesterday at 3:27 pm

» Current 2021 Februray Unit Trust/Unit Fund Per Annum percentages
by N W Yesterday at 2:44 pm

» WindForce (WIND) IPO Overview
by EquityChamp Yesterday at 10:09 am

» Norway -> biggest shareholder of NDB
by shihan 93 Yesterday at 9:56 am

» Many positives for Next week
by Vishwanarth Sat Mar 06, 2021 12:29 pm

» Maldives records over 100,000 tourist arrivals in first 35 days of the year
by samaritan Sat Mar 06, 2021 9:59 am

» Kind of behavior traders engage in when they are frustrated and want their money back from the market. Stock market for beginners
by lal62 Sat Mar 06, 2021 7:40 am

» EXPO EXPO EXPO
by Gowri123 Sat Mar 06, 2021 12:35 am

» still I believe this
by 100Bill Fri Mar 05, 2021 9:21 pm

» SUNSHINE HOLDINGS PLC (SUN.N0000)
by ErangaDS Fri Mar 05, 2021 8:19 pm

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™ » New Rules for credit

New Rules for credit

Go down  Message [Page 1 of 1]

1New Rules for credit  Empty New Rules for credit Wed Aug 17, 2011 2:54 pm

ssb

ssb
Manager - Equity Analytics
Manager - Equity Analytics
any one know what is basic rules for credit ,
did T+5 change to T+15
that mean i buy on 1st day i have to pay before 16th day
please explain

2New Rules for credit  Empty Re: New Rules for credit Wed Aug 17, 2011 3:07 pm

fair investor


Equity Analytic
Equity Analytic
@ssb wrote:any one know what is basic rules for credit ,
did T+5 change to T+15
that mean i buy on 1st day i have to pay before 16th day
please explain

No more T+ rules. If broker has assets, you don't needed to sell it within few days. It will be credited to your account as a loan from broker

3New Rules for credit  Empty Re: New Rules for credit Wed Aug 17, 2011 3:20 pm

ssb

ssb
Manager - Equity Analytics
Manager - Equity Analytics
@fair investor wrote:
@ssb wrote:any one know what is basic rules for credit ,
did T+5 change to T+15
that mean i buy on 1st day i have to pay before 16th day
please explain

No more T+ rules. If broker has assets, you don't needed to sell it within few days. It will be credited to your account as a loan from broker
wow then when do i have to pay ????????????????

4New Rules for credit  Empty Re: New Rules for credit Wed Aug 17, 2011 3:35 pm

Deva


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
To my understanding there is no change in T+ rules.
Experts please comment on this topic.
Are the comments made on this topic correct?

5New Rules for credit  Empty Re: New Rules for credit Wed Aug 17, 2011 3:37 pm

maalinda


Manager - Equity Analytics
Manager - Equity Analytics
No idea wheather t + has changed or not. i guess there is no more T + 5 force selling rule...

When your broker ask you... you will have to.

it depends on your broker assets + the relationship with you and broker.

6New Rules for credit  Empty Re: New Rules for credit Wed Aug 17, 2011 3:40 pm

Antonym

Antonym
Vice President - Equity Analytics
Vice President - Equity Analytics
As I see it: Each broker will operate differently, while adhering to the SEC notification.

Your credit limit is likely to be determined by your portfolio value and/or volume of business.
Some brokers might give 'revolving credit' - Stay within your limit and Pay within x days.
Others might give 'open credit' - Stay within your limit and pay at your convenience.
What is certain is that all brokers who meet the criteria will be able to earn good interest from their clients!

I suggest that we speak to our respective brokers and find out (a) How much is your credit limit? (b) Do you need to settle within a particular period after the transaction? (c) What rate of interest will be charged for the credit that is availed?

Please share your findings with the forum.

7New Rules for credit  Empty Re: New Rules for credit Wed Aug 17, 2011 3:45 pm

nkalansu


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
If nobody is going to pay and all are asking for credit then from where you get the funds? I don't think brokers can give credit forever .... and also I do not think they will make settlements T+15.....

Do you like if brokers settle T+15 when you sell your stocks....???

Well this is interesting.......Brokers settle T+3 however they give T+15 to clients....... how long can you do it.....??

Forced selling again in couple of months i think.

8New Rules for credit  Empty Re: New Rules for credit Wed Aug 17, 2011 4:02 pm

Hiru


Manager - Equity Analytics
Manager - Equity Analytics
Play with your own money while others will play with credit because you will win at the end. This is a trap created by brokers for their benefit and if you do not learn it immediately, you will have to pay the price and learn in few months.

9New Rules for credit  Empty Re: New Rules for credit Wed Aug 17, 2011 4:08 pm

Antonym

Antonym
Vice President - Equity Analytics
Vice President - Equity Analytics
@nkalansu wrote:If nobody is going to pay and all are asking for credit then from where you get the funds? I don't think brokers can give credit forever .... and also I do not think they will make settlements T+15.....

Do you like if brokers settle T+15 when you sell your stocks....???

Well this is interesting.......Brokers settle T+3 however they give T+15 to clients....... how long can you do it.....??

Forced selling again in couple of months i think.

Credit is there in most businesses. For example, when the company which I work for wants to buy things, they frequently get it on credit - and pay within 30 or 60 days (depending on the supplier's credit terms).

The supplier provides credit upto a certain limit for us because we are important customers for them; we have been buying from them for a long time and we generally pay on time. Some customers are not given credit facilities because their volumes are either too small or their payments are too inconsistent. By following a prudent credit policy, the supplier can maximize his profits with hardly any risk.

I think broker credit will follow a similar policy.

10New Rules for credit  Empty Re: New Rules for credit Wed Aug 17, 2011 7:15 pm

pitbull

pitbull
Senior Equity Analytic
Senior Equity Analytic
T+ Any amount f dates bt thers an interest 24% per annum. Means 2% per month

11New Rules for credit  Empty Re: New Rules for credit Wed Aug 17, 2011 8:25 pm

rijayasooriya

rijayasooriya
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
@fair investor wrote:
@ssb wrote:any one know what is basic rules for credit ,
did T+5 change to T+15
that mean i buy on 1st day i have to pay before 16th day
please explain

No more T+ rules. If broker has assets, you don't needed to sell it within few days. It will be credited to your account as a loan from broker

There is a some sort of loop hole here.Brokers may try to do force selling with this assets issue.They should not be allowed to give credit beyond their assets.

Guys be careful when u buy on broker's credit as SEC annoucement does not mention any guidelines.

12New Rules for credit  Empty Re: New Rules for credit Wed Aug 17, 2011 8:39 pm

dindon1

dindon1
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
What I understand by the mechanism followed by my broker is like this;
They let me to buy as much as I want(because I am a very good client to them)Then ,when it hit T+5 they ask me to sell.,So I sell sometimes for loss.(in recent past it was for loss most of the time)And they allow me to buy again,.some times it is a perfect day trade and when I ask to sell on the same day they will tell me this stock can start even more higher tomorrow.,,Why do they suggest that???That is merely being playing the game to attract double commission...its like if you buy and sell on the same day you will pay only half of the commission than you buy and sell in two different days.To keep the credit I play according to them.,What a dumb a#@se I am??So being such a dummy how would it effect these new rules for me??Any one can explain in simplest way??

13New Rules for credit  Empty Re: New Rules for credit Wed Aug 17, 2011 8:40 pm

Gaja


Associate Director - Equity Analytics
Associate Director - Equity Analytics
well i never care about the amount of credit given by the broker, since i do the transaction if i have money, but i feel every adviser should inform to his or her client well in advance the maximum amount they can give, the settlement period and the interest rates, who ever deals with the credit without knowing these basic things need be extra careful

14New Rules for credit  Empty Re: New Rules for credit Wed Aug 17, 2011 9:57 pm

Hiru


Manager - Equity Analytics
Manager - Equity Analytics
@dindon1 wrote:What I understand by the mechanism followed by my broker is like this;
They let me to buy as much as I want(because I am a very good client to them)Then ,when it hit T+5 they ask me to sell.,So I sell sometimes for loss.(in recent past it was for loss most of the time)And they allow me to buy again,.some times it is a perfect day trade and when I ask to sell on the same day they will tell me this stock can start even more higher tomorrow.,,Why do they suggest that???That is merely being playing the game to attract double commission...its like if you buy and sell on the same day you will pay only half of the commission than you buy and sell in two different days.To keep the credit I play according to them.,What a dumb a#@se I am??So being such a dummy how would it effect these new rules for me??Any one can explain in simplest way??

I agree this and that is why I am clearing everything and now i am going to give up my margin facility too.

15New Rules for credit  Empty Re: New Rules for credit Wed Aug 17, 2011 10:53 pm

bmi


Senior Equity Analytic
Senior Equity Analytic
what ever, brokers should work as a broker not like a bankers ( Recovery Branch) LOL I heard we can go upto 50% value of PF with interest if it goes more than 50% we are liable to pay or force selling will impose for the additional value, is it right, others views are appreciated in this regard

16New Rules for credit  Empty Re: New Rules for credit Wed Aug 17, 2011 10:57 pm

ssb

ssb
Manager - Equity Analytics
Manager - Equity Analytics
@dindon1 wrote:What I understand by the mechanism followed by my broker is like this;
They let me to buy as much as I want(because I am a very good client to them)Then ,when it hit T+5 they ask me to sell.,So I sell sometimes for loss.(in recent past it was for loss most of the time)And they allow me to buy again,.some times it is a perfect day trade and when I ask to sell on the same day they will tell me this stock can start even more higher tomorrow.,,Why do they suggest that???That is merely being playing the game to attract double commission...its like if you buy and sell on the same day you will pay only half of the commission than you buy and sell in two different days.To keep the credit I play according to them.,What a dumb a#@se I am??So being such a dummy how would it effect these new rules for me??Any one can explain in simplest way??
you mean brokers will milk us more with this credit present Sad

17New Rules for credit  Empty Re: New Rules for credit Wed Aug 17, 2011 11:01 pm

Aamiable


Vice President - Equity Analytics
Vice President - Equity Analytics
Luckily I don’t collect any thing on credit. ....not worth ...

18New Rules for credit  Empty Re: New Rules for credit Thu Aug 18, 2011 1:04 am

smallville

smallville
Associate Director - Equity Analytics
Associate Director - Equity Analytics
@ssb wrote:
@dindon1 wrote:What I understand by the mechanism followed by my broker is like this;
They let me to buy as much as I want(because I am a very good client to them)Then ,when it hit T+5 they ask me to sell.,So I sell sometimes for loss.(in recent past it was for loss most of the time)And they allow me to buy again,.some times it is a perfect day trade and when I ask to sell on the same day they will tell me this stock can start even more higher tomorrow.,,Why do they suggest that???That is merely being playing the game to attract double commission...its like if you buy and sell on the same day you will pay only half of the commission than you buy and sell in two different days.To keep the credit I play according to them.,What a dumb a#@se I am??So being such a dummy how would it effect these new rules for me??Any one can explain in simplest way??
you mean brokers will milk us more with this credit present Sad

Always stick to the general rules.. Dont keep till it exceeds T+5, ask ur broker the amount yu'll have to pay if exceeding it in a worst case.. Ten calculate the profit/loss and decide what to do..
My main advice is, dont make broker rich unnecessarily Wink

19New Rules for credit  Empty Re: New Rules for credit Thu Aug 18, 2011 8:55 am

Chinwi

Chinwi
Associate Director - Equity Analytics
Associate Director - Equity Analytics
From where this T+15 came ?

There is no limit like that.

If brokers manage their own assets as per the SEC guidelines they can give you credit as long as they want. They will like it because they can charge high interest from the clients.

If the owners find it lucrative they will infuse further funds to the company.
Because they can get funds at half cost. I think this may become a business like Credit cards.

( as per SEC rule an OD or loan taken by the broker company will not increase their lending power)

When they reach the margin they will either increase their assets or stop giving further credit. I do not thing they will have to force you to sell unless they manage the system badly.


http://www.sec.gov.lk/images/Directive%2016%20August%202011.jpg

Annex 1:
http://www.sec.gov.lk/images/Annexure%201%20Directive%2016%20August%202011.jpg

Sponsored content


Back to top  Message [Page 1 of 1]

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