Stockbrokers hail development-oriented budget

"The Colombo Stock Brokers Association (CSBA), representing 23 stock brokering companies is happy about the unprecedented policy initiatives proposed in the Budget to develop the capital market in 2013.

We, as one of the major stakeholders of the capital market of Sri Lanka are elated that the important and urgent need to develop the capital market has been duly recognised.

The key proposals demonstrate the government's desire to see a vibrant capital market in the immediate future," a spokesman for the Association said,

"Introducing a three-year, 50 percent tax holiday for new companies to be listed at the CSE with a public float of at least 20 percent on or after April 1, 2013, exempting stamp duty for the transfer of shares to and from margin trading accounts effective from January 1, 2013 are some of the measures that will improve liquidity at the Colombo bourse.

Permitting lump sum depreciation up to 100 percent for the stock broking companies for IT development and setting up of branch offices from April 1, 2013 would help the market intermediaries to evolve into full fledged brokerage houses on par with their peers in the international arena," he said.

"Proposals impacting the debt market and the unit trust industry are also very encouraging. The appointment of a Presidential Task Force to implement a capital market development master plan is the most important proposal impacting positively on the capital market," he said.