The Securities and Exchange Commission (SEC) has called for information from the Colombo Stock Exchange (CSE) on LOLC's application for the stockbroker licence which was rejected.
"The CSE has responded to one query pertaining to that of LOLC," an informed source told the Business Times, adding that high networth investor, Dato' Seri Tiong King Sing has also appealed to the SEC against refusal to grant him a licence but CSE hasn't still been informed or been called for information.
The source said that SEC will now decide, based on CSE's information, whether to grant the licence to LOLC.
Mackwoods Group's Calridge Ltd, Commercial Bank, India Infolines, Richard Peiris and Bank of Ceylon were successful in the CSE's selection process. The successful candidates will have to incorporate the stockbroking firms and then apply for the CSE membership, after which the SEC will grant them the licence.
Last June, the CSE advertised for broker licences and said that successful applicants would have to open at least one branch office outside Colombo within the first year and a further two branches within the second year of operation.
The licences will cost Rs 25 million plus taxes per licence, with a minimum startup capital of Rs 50 million. Currently there are 21 broking firms dealing in debt and equity at the Colombo bourse.