Positive market sentiment vital to stimulate investor confidence towards share market: Nisha Premathiratne

Wednesday, 3 February 2021 00:00 - - {{hitsCtrl.values.hits}}

Nisha Premathiratne

International Chamber of Commerce (ICC) Regional Representative for Sri Lanka and Ministry of Justice Commercial Law Reforms Sector Specialist Nisha Sydney Premathiratne is of the view that a

positive market sentiment is paramount in order to stimulate investor confidence towards the share market.

One of the very few significant positives for the country at this juncture is indeed the bullish market attracting global investors. However, if the market plummets close to 700 points in a day which some might attribute to over regulation, such would deter investors from coming into the market and retract market confidence.

In this backdrop, stakeholders would have to be cautious when implementing rules in respect of the market, as such might send mixed signals to investors. Regulations are indeed important and the regulators globally make every endeavor to ensure that investors’ interests are protected by acting as a watchdog.

However, there is a thin line between regulation and over regulation. Every decision has to be carefully thought of and deliberated with all stake holders, prior to being implemented. After all, if the market sentiment is negative with reduction in turnover and trading, the objective of regulation might be actually be pointless.