National Chamber and SEC forum on ‘Debentures: Capital without collateral’

Tuesday, 3 June 2014 01:22 - - {{hitsCtrl.values.hits}}

The National Chamber of Commerce of Sri Lanka in association with the Securities & Exchange Commission (SEC)and Colombo Stock Exchange(CSE) held an Issuer Awareness Forum on ‘Debentures: Capital without collateral’ on 29 May conducted at the National Chamber auditorium. The purpose of the forum was to create awareness and to engage in a dialogue with the members of National Chamber and non-member SMEs, about the new initiative of the SEC and the CSE to reach out to SMEs in Sri Lanka.

SEC Director Corporate Affairs Harshana P. Suriyapperuma made a presentation on the direction the SEC is contemplating to evaluate the possibilities of developing a new capital market product to channel funding to the SME sector. The clear guidance from the commission of the SEC to evaluate and explore means of facilitating financing for SMEs through the capital market was explained in detail with possible options to achieve the objective. The speaker highlighted the features of the proposals, benefits to SMEs and key stakeholders, risk mitigation proposals, and the challenges faced when defining criteria for entry requirements. He was positive that if key stakeholders are in agreement, an achievement is within reach. CSE Head of Listing and Corporate Affairs Priyana Gunasekera covered the benefits of Listing on the CSE during her presentation. She particularly emphasised the benefits of issuing listed corporate bonds/debentures by SMEs who face difficulties with collateral. A panel discussion was held to illustrate some aspects of the proposed initiatives. The panel comprised of the Senior Deputy President of National Chamber Thilak Godamanna, Secretary General/CEO of the National Chamber Bandula Dissanayake, the Legal Officer of the Department of Registrar of Companies Heshan Mathugamage, Mr. Suriyapperuma, and Mrs. Gunasekera. Participating SME owners and other key stakeholders actively engaged with the panel and obtained clarifications. Suriyapperuma requested the SMEs to submit their business profiles for evaluation to expedite the process. Any qualifying SME who requires finance through the proposed scheme, may contact the SEC Corporate Affairs Division for more information. The SEC also contemplates a similar event in the near future if demand exists.