For the last 2-3 years there has been no payment of interest on our deposits. We had a depositors union which collected funds from depositors with no results. Then again the Central Bank says that they do not handle this subject any more as the Attorney General has taken over.
We are desperate and we do not know whom to contact to know the present position. I have deposited Rs. 200,000 and my wife has deposited Rs. 8.5 million.
We are both senior citizens aged 76 and 81 years. We both need money for our medical expenses.
Senior citizen
Panadura
Small investors benefit from Singer Finance IPO
The recent successful conclusion of the Singer Finance (Lanka) Ltd Initial Public Offering (IPO) would prompt all small time investors to appreciate the manner in which the allotment has been made.
The Board of Directors of the company should be congratulated for allotting a larger number of shares amongst small time investors, which is what all new companies seeking a listing on the CSE should take note of.
Holistic view
The whole purpose of an IPO (from a company’s point of view) is to satisfy and receive benefits that the capital market offers such companies.
As such it should take a calculated, value added and broader stakeholder perspective in every transaction it envisages.
Such a measure would help companies through the following:
a)To create and improve their own internal marketing prospects such as using the investor base to market their products thus reaching a wider market,
b) The wide share ownership base ensures involvement of the shareholders in the company’s overall activities, thus building an ethical and fair entity that would be able to steer its way during turbulent times,
c) Serves as a buffer against hostile takeovers thus adding value and increased value of the share.
What is required is for prospective companies to take the message to a greater number of persons in the country rather than pleasing a few corporate investors who in fact have the clout to make secondary market investment purchase of such listings.
If Sri Lanka is to be an “emerging power house” the standards and ethics should be put in place so that all stakeholders in turn would benefit in a democratic manner.
I hope the regulator takes a cue from these thoughts and prescribes a minimum allotment (subject to the issue being fully subscribed), which would help spur the development of the capital market ensure that all citizens of the country get involved and prosper.
I would urge all small investors to voice their opinions on these issues as it helps developing the capital market which should be uniquely a Sri Lankan model.
Sheahan Pereira
Hendala.
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