Business Times

SEC may revisit price band

The Securities and Exchange Commission (SEC) may re-visit the price band directive, which they issued in October last year as the share market dynamics have now changed since the start of 2011, SEC sources say.

“The whole context in which shares trade (now) has changed with stockbrokers being prohibited to grant credit to investors, margin lending facility coming in, etc. So the SEC has pondered some changes to the price band and we may change it, but nothing has been finalized,” a SEC source told the Business Times.

He reiterated that in this (fresh) market context, the SEC is aware that it has to make some changes, but the final consensus has not been received as yet by the commission.

Since its inception, the first to enter the band was finance company Vallibal Finance followed by Lake House Printers. Bogala Graphite, Metropolitan, East West, Coco Lanka, Colombo Land (warrants), Ceylon Tea Brokers and Muller and Phipps followed suit into the price curb along with a host of others, while PC House, a new kid on the block, saw it being admitted into the dreaded band on Thursday.

Despite many representations from the stockbrokering community in the past months, the regulator didn’t relax its stance pertaining to the price curbs. An analyst noted that ‘Laissez faire’ (leaving the markets free from state or any other interference) is a cornerstone principle of free market economics. “The more you interfere the more distorted the markets will be.

No prudent investor would want to come and invest in a distorted and warped market. Market is always right. Leave the market free from outside interference and it is capable of self regulating and coming to a stable equilibrium state,” he added.

But the SEC said that the price bands were considered for some time and when it was verified that some investors were pushing some shares, the regulators had to step in.

Top to the page  |  E-mail  |  views[1]
SocialTwist Tell-a-Friend
Other Business Times Articles
Dollar seen weakening to Rs 106-108 in 2011
Erroneous New Year lottery incurs heavy loss for NLB
No big names for Kalpitiya, Govt. may issue fresh bids
Seylan Bank’s top three officials resign
Grand Oriental Hotel deal in fizzled out mode
Order reserved in oil hedging arbitration
Comment - Roadmap to prosperity
Feature - US GSP for over 130 countries expires, likely to re-start in next few months
Feature - Crisis in coconut: Long term perspective for development of coconut needed
20,000 MFIs to be regulated under Micro- Finance regulations: CB Governor
Indian experts to share insights at ICASL workshop
Laugfs to offer non Acetylene metal cutting gas
Coca Cola gives permanent jobs to 25 top salesmen
City tour for tourists
Central Bank predicts 8-9% economic growth for Sri Lanka
Budget and the Deemed Dividend Tax
Overseas employment prog. should be pro-active: NWC
Markss Healthcare helps in courses to educate ‘budding’ surgeons
Communications’ specialists to share expertise at Feb. 3 seminar
No control over share price movements : PCH
New MD at Ceylon Tobacco Company
SLASSCOM elects new board for 2011
Efutures provides support services to Wall Street firms
ODEL builds 20 houses to mark 20th anniversary
Pelwatte milk foods to enter the market shortly
East coast - hot destination for heli flights
Aitken Spence Printing at Galle Literary Festival
ICASL to introduce new ICT enabled products to its students and members
20 mln shares on offer in Marawila rights issue
Former Nestle SL MD to head Kotmale
‘SURE’ rewards from Seylan Bank to all customers
Emirates sponsors popular authors to Galle Literary Festival
CB Governor on ITN's "Rupees and Sense"
Colombo bourse half day on Jan. 14
SLIC pays Harry’s DCSL Rs. 6.7 bln as per SC order
HVA set to consolidate HELADIV brand through IPO
Lankan PR firm launches website
Ray of hope for GK depositors under new payment proposals
New port city being built at $450 mln cost
Commercial Bank reaches milestone 400th ATM
Proposed 5-day week for those seeking flexible working hours: EFC
Mobitel reached 3.8 million subscribers by Nov. 2010
Tea prices, production and exports seen strong in 2011: Forbes report
SEC may revisit price band
Lanka Bell may not be sold
Sri Lanka rubber prices seen rising
Oman Air CEO speaks on in-flight entertainment
Sri Lanka is next Asian economic miracle :ex-Pakistan bureaucrat


Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 1996 - 2011 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved | Site best viewed in IE ver 8.0 @ 1024 x 768 resolution