Choosing the Right Stock Brocker
People who are just beginning their investment journey in the share market in Colombo Stock Exchange can experience some difficulties without the knowledge of how the market works... More »
Common Mistakes
Some investors seem to know their ways through the share market in Colombo Stock Exchange which has made them to be very successful. On the other hand, other investors are still struggling, making mistakes... More »
Alternative Investments
Trading in the stock market can yield high returns and many people have created wealth out of it. However not everyone is skilled in trading stocks and a good number who tried their luck mostly came out with financial wounds... More »
SEC to Consider 10% Minimum Free Float
08 May 2012
Reuters: Sri Lanka’s Securities and Exchange Commission (SEC) is considering to impose rules to require quoted companies to have a free float of at least 10 percent to increase market liquidity and could make a decision on the matter this month, the head of the regulator said on Tuesday.
“We are looking to increase liquidity seriously for a minimum of 10 percent float,” SEC Chairman Thilak Karunaratne told Reuters in an interview. “Final decision will be taken as soon as possible, hopefully before June.”
While the public float — shares held by investors independent of a company and its management — of the broader stock market is about 30 percent, exchange data shows some of the biggest listed firms, which foreign investors are most interested in, have free floats of only around 5 percent.
Karunaratne said there was a risk a minimum float requirement could be counter-productive as some big firms may decide to delist, and he would consult with the market before finalising the regulation.
“We don’t want anybody to get delisted. Perhaps we will talk to big companies and multi-nationals and ask their view on the minimum float,” he said.
SEC Lifts 10% Price Band
19 April 2012
Securities and Exchange Commission of Sri Lanka (SEC) today removed the 10 percent price band which was imposed on all listed securities since 2010.
Previously a 10% price band was there for five market days on certain securities based on a formula designed by CSE which takes into account volatility and volumes.
The SEC directed the Colombo Stock Exchange (CSE) today following its meeting on April 18th to lift the price band.
However, SEC is to continuously monitor the behavior of the market and the band may be re-imposed if required in the future.
The SEC introduced this price band in 2010 with an objective of controlling price manipulations on weak stocks and to maintain stability in the stock market.
