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Friday, 17 February 2017 00:00 - - {{hitsCtrl.values.hits}}
In an effort to attract retail investors into the capital market, leading investment banking firm, Capital Alliance (CAL) has introduced a path-breaking facility where, the firm would register an account digitally with the Colombo Stock Exchange (CSE) for the first time in Sri Lanka.
The new technology empowers its clients to digital sign on to all CAL’s financial services, creating a new gateway to trade online with minimal hassle.
Speaking on this historic milestone, CAL Managing Director Ajith Fernando said the facility offers unparallel ease of use and flexibility to our clients to conduct their interactions online, at their convenience and in a secure manner from anywhere, anytime.
Noting that they we have been focused on institutional investors he pointed out that they did not see a way that would actually take the capital market to retail investors in a cost effective way. However, with the digital revolution, CAL now hopes to capitalise on the smartphones to reach out to the youth and encourage them to actively participate in the capital market.
“Mobile phones have taken over everything. Suddenly it paved the way for us to access six million clients in a cost effective manner,” he added.
Fernando acknowledged that Securities Exchange Commission (SEC), CSE and the Central Bank are very concerned about the fact that the masses cannot access the capital market and only the large investors have reached and benefitted.
“End of the day, public is not participating in the stock market and it is the institutions that are really making money. We want the younger generation to actively participate in the market. I would reckon it is the below 30’s who would really start using it actively,” he stressed.
In addition he said that this would allow Sri Lankan expatriates as well as foreign investors to open CDS accounts and engage in trading activates of the stock market.
He said that the firm has invested over Rs. 30 million on initiating this facility with all backend support systems as well as security measures.
Justifying reasons for taking so long to come up with a facility if this nature Fernando said: “Unlike the banks and other deposit taking businesses, our margins are extremely narrow. We cannot afford to have that kind of branch network, distribution channels like they enjoy. It was unfortunate that we had to wait for a cost effective mechanism to reach out to the masses.”
CAL Director and CEO Harinlal Aturupane said this revolutionary digital platform would have a massive impact on the share trading at the capital market. “CAL is the only broker who allows clients to open CDS accounts digitally. There would be so many people wanting to come to the market now, because of the ease of getting a CDS account opened and engage in trading,” he added.
Stating that there are around 150,000 to 200,000 investors active in the capital market at present, Aturupane asserted that they expect to see an annual increase of 10% in individual investor participation with the introduction of the new digital mechanism.
The entire digital signature process has been formulated in compliance with the provisions of the Electronic Transaction Act of 19 of 2006. In rolling this out, CAL has partnered with eMudhra Ltd., a leading certifying authority in Asia.
The new digital mechanism is yet another testimony of CAL’s commitment to deliver excellence in execution, world-class research and product innovation.
(CDS)
