CSE-CSBA, CSE-SEC meetings today

Tuesday, 9 August 2011 01:30 - - {{hitsCtrl.values.hits}}

Though said to be routine the Colombo Stock Exchange (CSE) is scheduled to have two separate meetings today with the Colombo Stock Brokers Association (CSBA) and the Securities and Exchange Commission (SEC), the Daily FT learns.

Analysts said outcomes of these meetings may have a bearing for the better or worse on the much speculated, anticipated and equally controversial relaxation of credit rules involving brokers and their clients. The meetings also come ahead of a Wednesday gathering of SEC Commissioners where finality on whether credit rules should be relaxed or modified would be reached.

The CSBA’s late July written proposals to the SEC had some differences of opinion within its membership but the SEC was given the options. Some believe credit shouldn’t be extended beyond the current T+5 arrangement purely on the basis that those concerned aren’t credit worthy whilst others contend brokers should be given freedom to extend based on the strength of the net capital and relationship of clients.