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| Sunday, 1 May 2005 |
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SEC approves measures to develop Capital Market Significant changes in the areas of settlement periods, broker exposure and the commission rates of brokers have been approved by the Securities and Exchange Commission (SEC) to develop the capital market, a statement from the SEC said. First, the settlement cycle will be reduced by one day. This is pursuant to an agreement reached with the Colombo Stock Brokers' Association (CSBA) and the Colombo Stock Exchange (CSE). Accordingly settlement will be effected in the case of purchases four market days subsequent to the trading day (T+4) and in the case of sales and five market days subsequent to the trading day (T+5). The reduction in the settlement cycle will also apply to inter-participant settlements. The second of such changes is designed to minimise the settlement risk prevalent in the market. Taking into account concerns expressed by stockbrokers it was decided that these rules could be reviewed six months consequent to implementation. |
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