Brokers have welcomed, what they call, President Mahinda Rajapaksa’s prompt action on margin trading limits in response to the appeals made by the Colombo Stock Brokers Association (CSBA) at its meeting this month at Temple Trees.
According to a CSBA press release, the Central Bank issued a directive to all the Commercial Banks that the 5% ceiling on lending against listed securities has been removed altogether with immediate effect. “Banks can now use their discretion to decide on the amount to be lent to margin trading seeking customers.
This timely gesture can inject billions of rupees by way of margin trading funds to the stock market,” it said.
The association also thanked Minister of Economic Development Basil Rajapaksa, Governor of Central Bank-Ajith Nivard Cabraal and Deputy Governor of Central Bank Ananda Silva for taking timely action.