Stock Brokers Association explains the recent proposals

The negative publicity has caused the public to lose confidence in the Colombo Stock Exchange. We, the Colombo Brokers Association (CSBA) want to state categorically that we are unequivocally committed to the development of capital markets, while appreciating a balanced approach to market regulation.

In this regard, we very much welcome a consultative approach through which could be a majority consensus obtained before the introduction of new regulations for the market, the association said.

In the recent past, the CSBA has seriously sought some changes in policies for development strategies in the equities market and stay in line with the overall macroeconomic objectives set by the government in the post war in Sri Lanka.

Towards achieving this goal, we went through a series of meetings that began with the Management Board and SSC, the Securities and Exchange Commission (SEC) and finally with the President, Mahinda Rajapaksa, who gave the CSBA's opportunity to place their proposals for consideration. All 28 registered shares of brokerage firms were invited CSE individually to attend the meeting with the President, and attended 22 of them.

We would point out that the granting of credit is a basic need in any industry and all brokerage firms in almost all countries offer margin trading facilities directly or through related companies. Our proposals were presented as an action plan to boost the participation of investors and restore confidence in the Colombo Stock Exchange. The Association would like to reiterate that we fully support the regulations and the measures taken against the wicked, and would shortly adopt a code of ethics to ensure that all members follow the rules and regulations in line with best international practices, the association said .

The CSBA has been in existence since 1995 and our members have played an active role in the Colombo Stock Exchange (CSE) and have always acted in the best interest of market development File Sri Lanka. (SJ)