Financial Times

New brokers soon at CSE
By Duruthu Edirimuni
The Colombo Stock Exchange (CSE) is in the process of approving five new brokers from a list of 12 applicants in a bid to broadbase the stock market.
Industry sources said that Softlogic (Pvt) Ltd, Taprobane Fund Management, Capital Alliance, Boston Asset Management, Amana Takaful, Nawaloka Hospitals, Central Finance and Seylan Merchant Bank are among the initial 12 applicants and the CSE has shortlisted seven out of which five will be given the membership of the CSE, while the Securities and Exchange Commission (SEC) will grant them the licences to trade.

Vajira Premawardhana, Executive Director, Lanka Orix Securities Company (Pvt) Ltd, said this is a good move as it will increase the size of the market, while bringing in new blood to the profession. “The current players are milking the same segments and new blood in the industry is more competitive and more motivated,” he said.

He also said when the market is broad based it is difficult for an individual or a group to manipulate the market. However, some stock analysts said that more competition is good for the existing players but the newcomers will find it difficult to survive. “A new company has to offer something new, but it is not very clear what they are planning to bring in and if they take to the ‘same thing’, they will find it difficult to survive,” a stock analyst said.

Hiran Mendis, CEO, CSE said that markets always go up and down and there is no ‘right time’ to introduce new players. “There is no ‘ideal time’ for change and introducing new players is a long term scenario,” he said.

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