The Securities and Exchange Commission (SEC) of Sri Lanka on Wednesday urged stock brokers to extend credit facilities to their clients through Margin Providers registered with the SEC.
Ms. Indrani Sugathadasa, Chairperson of the Securities and Exchange Commission of Sri Lanka together with other members and officials of the Commission and Nihal Fonseka, Chairman of the Colombo Stock Exchange met with the members of the stockbroking industry and informed them that the directive that was issued earlier by the Commission on extending credit to any investor beyond T+3 days, was not a measure taken by the Commission to discourage investors, but was a critical step taken towards managing the inherent systemic risks in the capital market.
“The Commission has published a list of the Margin Providers registered with the Securities and Exchange Commission of Sri Lanka in the newspapers for the information of the public and has also made the list of registered Margin Providers available on the website of the Securities and Exchange Commission of Sri Lanka (www.sec.gov.lk),” the statement said.
“The Commission having taken note of the concerns of the stockbroking industry also permitted the stockbrokers to grant a brief grace period to buyers who are in default of settlement by T+3. Accordingly stockbrokers will be granted an additional 2 days to force-sell securities of buyers which are in default of settlement by T+3 in order to recover the monies owing to them by such defaulting client,” it said.