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Tuesday, October 09, 2012 - 6.46 GMT |
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SEC lifts certain restrictions on trade |
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The SEC has decided inter alia on the following to be effective from 9th October 2012.
1. To amend the Net Capital computation in order to relax the credit granted by stock broking companies to their clients. In that the stock brokers are now permitted to extend credit to their clients three times the adjusted Net Capital (i.e. Net Capital minus 50% of fixed assets) without having to deduct outstanding debtors from net capital. However the stock brokers are required to compute the Net Capital adjusting all unsettled purchase transactions (over T+3) to reflect the excess of cost over market value. Further stock brokers are required to ensure strict compliance with all rules and regulations applicable fro extension of credit.
2 To lift the upper limit of 20% imposed on the price of transactions carried out on the crossings board of the Colombo Stock Exchange and to re-establish the status quo that existed previously in the Automated Trading Rules.
3. To lift the restrictions imposed on executive directors, employees, their spouses and their nominees of all licensed stock brokers and stock dealers from selling listed shares purchased from the secondary market for a period of 6 months from the date of purchase.
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