ඔබ මෙම අඩවියෙන් ලිපි පිටපත් කරන්නේ නම් කරුණාකර අප වෙත දන්වන්නටත්, මෙම අඩවියේ මුල් ලිපියට සබැඳියක් යෙදීමටත් කාරුණික වන්න. කිසිදු මූල්යමය කටයුත්තකට මෙහි ලිපි භාවිතා නොකරන්න.
Tuesday, May 7, 2013
The Colombo Stock Exchange (CSE) is currently in the process of amending regulations pertaining to the listing of debt securities, according to CSE’s Assistant General Manager of Regulatory Affairs, Renuke Wijayawardhane.
“We are currently in the process of revising some of the Listing Rules. However, nothing has been finalised at the moment and we are still at the discussion stage,” Wijayawardhane said.
Amendments to the current regulatory framework follows a spate of new listings of corporate debt, mainly debentures, on the CSE by listed and unlisted companies, seeking to capitalise on generous concessions granted in Budget 2013.
Proposals in question include the exemption of the withholding tax on interest income earned by investing in bonds and debentures listed with the CSE.
Speaking to Mirror Business about potential barriers to the establishment of a vibrant corporate debt market in Sri Lanka, Wealth Lanka Management (Pvt.) Ltd Chairman Mangala Boyagoda highlighted lack of information and regulation on unlisted companies as a potential challenge.
“Recent steps taken to promote the creation of a corporate debt market are very positive. However, statistics on unlisted companies are lacking. So, it’s very difficult to get a clear understanding of the depth of the Sri Lankan corporate debt market,” he said.
Boyagoda also called for more stringent regulation of unlisted companies, which expect to list debt securities.
“Unlisted companies issuing listed debentures must be regulated, so there is control over who is allowed to list debentures and at what amount. Investors have had their fingers burned in similar situations before, so proper regulation will be important to establish confidence,” he noted.
Policy consistency with regards to tax concessions was highlighted as a further area of concern. “Removal of the withholding tax and other tax concessions will help grow the corporate debt market. However, there are concerns about their impact on government revenue.”
“Now that they’ve implemented it, there has to be some consistency to allow the market to adjust but with current revenue levels, I have concerns about the sustainability of tax concessions,” Boyagoda said. Meanwhile, Heraymila Securities Limited CEO Ravi Abeysuriya called for streamlining of listing procedure and a greater focus on educating investors about the corporate debt market.
“There is a lot of change that will be required if the corporate debt market is to grow. Even now people are only buying debentures and then holding on to them so they’re not really being traded.” “More will have to be done to educate investors the approvals process, which is geared only towards equity, needs to be simplified,” Abeysuriya stated.
Sunday, April 14, 2013
Sunday, January 13, 2013
The report which projected the economic prospects for 2013 said that downward interest rates will stimulate the stock market activities as a shift in investments from fixed income securities to high yielding investments will be witnessed. “Inflation is also expected to fluctuate within current levels amidst volatility in food prices which would result in the real interest rate falling further. Therefore, investors will search stock market investments with relatively sound earnings outlook of most of the listed companies,” it said.
According to the report, the banking and finance sector is expected to grow at a faster pace in 2013 against the growth levels recorded in 2012 supported more with the liberalized credit ceiling coupled with the expected growth in asset quality. “Moreover, the reduced interest rates will provide a hefty cushion on the bottom lines of companies with relatively high gearing via reducing interest cost, driving to record an upsurge in earnings.”