Less play as price band cut to five days

Friday, 29 April 2011 02:27 - - {{hitsCtrl.values.hits}}

THE Securities and Exchange Commission (SEC) said yesterday that the duration of the price band will be reduced to five market days from the previous 10 market days.

The move is effective from today.

The capital markets regulator said having reviewed the current market conditions, the Commissioners at the Commission’s 277th meeting held on Wednesday decided to further reduce the period of market days to which public listed companies would be placed under the 10% price band as a consequence of being captured under the formula (designed by the Colombo Stock Exchange and confirmed by the SEC) from 10 market days to five market days.

“The SEC will continue to closely monitor market conduct, especially in relation to the price volatility in the market and will consider further relaxations if deemed fit.

However the SEC may re-impose any conditions that have been relaxed so far if the market conditions so warrant,” the regulator said in a statement.

At present three companies – Alufab, Huejay and Beruwela Walk Inn – are under the band.