SEC directs relief to investors affected by COVID-19-hit stock market

Wednesday, 1 April 2020 02:38 - - {{hitsCtrl.values.hits}}

The Securities and Exchange Commission (SEC) has announced relief to all investors in the Colombo stock market, which has been affected by the novel coronavirus (COVID-19) pandemic.

In a directive to the Colombo Stock Exchange and all stock brokers, the SEC said that taking into consideration the impact caused to investors as a result of the drop in valuations of listed securities on or about 11 March 2020, it has decided to grant a moratorium to the clients of all licensed Stock Brokers and registered Margin Providers from the payment of interest on credit extended to them, which are due during the period commencing 11 March 2020.

This decision has been made upon taking into consideration the decisions taken by the Central Bank of Sri Lanka to set up a Re-financing Facility to implement the decisions taken by the Cabinet of Ministers on 20 March 2020, to introduce a wide range of fiscal and financial concessions to those who have been adversely affected due to the unprecedented situation presently prevailing in the country.

“Therefore all licensed Stock Brokers are hereby directed to pass on the benefit they will derive from the decisions announced by the Central Bank of Sri Lanka to their clients, and are directed to refrain from charging and recovering interest on credit extended to their clients until 30 June 2020,” the SEC directive said.

“This will be a temporary measure and the Securities and Exchange Commission of Sri Lanka shall monitor and review the impact of this directive from time to time, and shall reserve its right to amend, vary or repeal this directive any time before or after 30 June 2020, if deemed appropriate,” the SEC said.

This directive is effective until 30 June 2020.