CBSA launches best practice, web site

The Colombo Stockbrokers Association, the apex body that promotes and protects the interests of its members comprising regulated retail and institutional brokerage firms, last night etched two more chapters into its 18-year history.

Under the aegis of the Securities and Exchange Commission (SEC) Chairman Dr. Nalaka Godahewa and the Colombo Stock Exchange (CSE) Chairman Krishan Balendra, the CSBA took its mandate to promote standards, ethics, values, principles and accountability among the membership to new heights when it unveiled the much-awaited ‘Principles of Best Practice’ and launched a comprehensive website.  



CSBA President Dimuthu Abeysekera, who is the Managing Director/CEO of Asha Phillips Securities, said: “In developing a vibrant equity market, the role of stockbrokers is crucial and into this equation comes the tenets of transparency and enhancing effectiveness across the market. Facilitating a customer centric solution in securities trading in Sri Lanka would be a primary objective for the stock broking community, while maximising financial returns for the broader investor community by providing prudent timely information is also imperative. Therefore, stockbrokers are integral to this continued development of the overall capital market and by introducing these ‘Principles of Best Practice,’ we are intent on promoting professional standards among our members. This will in turn, enhance investor confidence prompting the industry to undoubtedly enjoy benefits of a vibrant market place.”  

Having identified the vital imperative to formulate a set of principles of best practice pertaining to the stock broking industry, the CSBA established a committee comprising both CSBA and non-CSBA members to study and analyse similar best practices prevalent in other markets.  This resulted in the CSBA’s ‘Principles of Best Practice,’ which uses a combination of best practices from Australia, India and those diktats within the CSE.  The aim is to make this an acceptable set of principles across the industry.

Having launched the website, both Chairs of the SEC and CSE commended the CSBA on their progressive stance.

“The stock broking companies represent a key stakeholder group in the capital market. Providing a common platform for the customer to obtain information about the brokering industry and their research activities will indeed be a positive step towards achieving the overall objectives of the capital market development roadmap,” explained Dr. Godahewa.

CSE Chairman Balendra added to the congratulations, stating: “The CSE welcomes the launch of the CSBA website and ‘Principles of Best Practice’. It is a positive step forward to encourage ethical practices in the industry and better transparency.”

CSBA was launched in 1995 initially as a forum of discussion on subjects and issues of relevance to the industry.  Today, with a membership of 23 and a vision to be the catalyst that promotes national development via investment, wealth creation and capital formation, CSBA has become the unequivocal voice for the industry, playing an active role in promoting and maintaining professionalism.

The association has also spawned a number of sub-committees dealing with the subjects of IT, market development, rules and compliance, research, principles of best practice and a consultative committee to the CSE and remains the only body in Sri Lanka recognised by the SEC and CSE as an accredited body representing the stock broking community.