ADL becomes Sri Lanka’s first Shariah compliant margin trading service provider

Adl Capital Limited, recently licensed by the Securities and Exchange Commission (SEC) of Sri Lanka as an Investment Manager, is poised to further expand its range of services, following the recent approval granted to its fully owned subsidiary, Adl Equities Ltd., by the SEC to offer Margin Trading services. Adl Equities thus becomes the first licensed provider of margin trading services on a Shariah-compliant platform.

A company spokesman said, “We believe that this is a huge milestone for the development of Shariah compliant financial services in Sri Lanka. This is yet another example of providing, innovative product structures in the capital market space, which is the cornerstone of Adl business model. We believe the Shariah compliant Margin Trading facility to be launched shortly is timely and would definitely serve the segment that seeks alternative financing for its investment needs.”  

Adl Capital Limited conducts its business in conformity with the principles of the Shariah and recently  partnered Com-trust Asset Management (Pvt) Limited in launching the Crescent i Fund – Sri Lanka’s first ever open ended Shariah Compliant equity fund, which provides investors with the option to invest in a selected group of listed companies on the Colombo Stock Exchange (CSE).

The Adl Group of Companies is actively engaged in promoting new and innovative products to the capital markets, focusing mainly in the areas of private equity, corporate finance, product structuring and corporate advisory.

Its advisory unit has already been engaged by several banking behemoths who have sought to enter the Islamic Banking industry by way of Islamic Banking Units (IBUs) or “windows”, as they are commonly known.

It is interesting to note that, whilst it may be commonly perceived that IBF would inherently appeal to a particular demography, the market experience would suggest otherwise; with IBF services straddling all communities.

Thus, the IBF industry is no longer the domain of an exclusive few and with large corporates, including listed companies, availing themselves of these services, the IBF is poised to enter a new phase in its rapid evolution. Given the growth that has been experienced in the country over the past decade, several conventional banks have entered this dynamic industry with others also expected to enter the fray.

As Adl Capital expands its investment horizons with the Margin Trading license granted to its subsidiary, Adl Equities Limited, the company looks ahead with optimism as it continues to play a pivotal role in the development of Shariah based Investment Banking in Sri Lanka.