Saturday Nov 23, 2024
Saturday Nov 23, 2024
Tuesday, 2 February 2021 01:15 - - {{hitsCtrl.values.hits}}
The Colombo Stock Exchange (CSE) yesterday clarified and corrected its circular on regulatory measures on monitoring credit exposure undertaken by stockbrokers and dealers.
The original circular, as exclusively published by Daily FT yesterday (http://www.ft.lk/front-page/SEC-CSE-issue-new-directives-to-brokers-on-credit-exposure/44-712429), listed several companies, implying brokers had placed a greater onus on or will come under sharper scrutiny on those stocks.
However, the CSE in a fresh memo to brokers said the list of securities set out under ‘Additional Information on Debtors Over T+3 Balance of Specific Securities’ in the original circular “appears to have caused misperception” in the market regarding the specific listed companies.
“The purpose of highlighting the said securities was to obtain information regarding credit exposure to such securities applicable to each stockbroker firm," said the CSE, requesting brokers disregard the list of securities in the original circular.
CSE said what was expected from brokers was top 10 securities on which credit has been extended to clients by the firm as at 29 January. Additionally, a list of all clients with a Debtors over T+3 balance having any of the said top 10 securities in their respective portfolios as at 29 January must be furnished as a breakdown.
CSE has set 9 February as the deadline for submission of new information.
