Relief to stock investors affected by downturn
View(s):The Securities and Exchange Commission (SEC) has decided to temporarily grant a moratorium to the clients of all registered margin providers and licensed stock brokers on the payment of interest on credit extended to them, due from March 11, a directive by the regulator said.
This is on account of the impact caused to investors as a result of the drop in valuations of listed securities on or about March 11, it added. This decision was made after decisions by the Central Bank to set up a re-financing facility to implement the decisions taken by the Cabinet March 20.
“Therefore, all registered margin providers are directed to pass on the benefit they will derive from the decisions announced by the Central Bank to their clients and are directed to refrain from charging and recovering interest on credit extended to their clients until June 30, 2020. Additionally all registered margin providers are required to act in the best interest and in a manner equitable to all its clients in carrying out its functions.”
This will be a temporary measure and the SEC will monitor and review the impact of this directive from time to time and shall reserve its right to amend, vary or repeal this directive any time before or after June 30 if deemed appropriate.