MBSL to hold seminar on incentives to listing of equities, debt

Monday, 7 January 2013 00:00 -     - {{hitsCtrl.values.hits}}

Going public was a trend that was seen after the war seeing its end. Many institutions derived many benefits from gaining listed entity status. However, developing a suitable capital product will be a success factor for an institution. This could involve from a basic share to a convertible debenture issue or even a complex hybrid structure.

In addition to this, a recent Government budget proposal 2013 was timely with many capital market development proposals including tax payable by any company listing its shares before December 2013 and offering more than 20% of its shares to the general public, will be reduced by 50% for the year of assessment in which the shares are listed and for the two years of assessment immediately.

This will increase the profitability and the retain earnings of the company which will enable corporates to distribute more dividend income to the shareholders of the company as well as part of the retain profits can be utilised for the future business expansion.

Further on the debt market side, interest income earned from investing in bonds and debentures listed in the CSE to be exempted from withholding tax. This provides higher yield to the investors in terms of no withholding tax and income exempted from tax. These areas will be focused in the program by a Merchant Bank of Sri Lanka resource person.

Another key area for success in business is restructuring. Restructuring is a corporate term used to emphasis on reorganising the legal, ownership, operational or even other strategies/processes of the company for the purpose of profitability or suit the present needs.

Restructuring is a time consuming tedious task, but should be properly assessed and carried out since a mistake in the identification of the problem or the poor formulation of the solution could lead to a negative impact on the company. This area will be covered by Sunil G. Wijesinha – Management Consultant and Trainer, Vice Chairman – Employers’ Federation of Ceylon and Senior Deputy President – National Chamber of Commerce of Sri Lanka.

Managing investments is a broad concept and will be derived based on the principles of risk and returns. Investments vary from equity investments to debt related investments. Switching your investments between equity and debt and even with the financial instruments could provide extra ordinary returns compared to general returns of the market. This area will also be Merchant Bank of Sri Lanka resource person.

Considering these above opportunities prevailing in Sri Lanka, Merchant Bank of Sri Lanka (MBSL) organising a seminar titled ‘Three perspectives of managing business’ to be held at Earls Court – Cinnamon Lakeside, Colombo on Tuesday, 29 January 2013 from 4 p.m. to 6.30 p.m.

On the same day, MBSL intends to publish a book titled ‘Knowledge Dissemination to the Business community’, compiling all the knowledge dissemination networking programs conducted by them, selecting a suitable eminent speaker and the topics to educate the business community and also building relationship in business on an ongoing basis during this period of 1998 to 2012.

A target group expected are from organisations seeking capital (debt/equity), medium to large businesses with slower growth, organisations planning for strategic restructuring, organisations planning for newer investments, managing directors, directors of companies, chief executive officers, general managers, chief financial officers, finance managers, portfolio managers, analysts, financial accountants, management accountants, staff of audit firms, financial advisory and consultancy firm staff, listed companies, banks and insurance companies and people with special interest in the areas on restructuring, implement and benefit from tax exemptions by listing and investments.