The Colombo Stock Exchange (CSE) on Tuesday announced changed in the brokerage fees and transaction costs, partly seen as a measure to restore confidence in retail investors.
Turnovers have collapsed and the market has slid in recent weeks with retail investors also avoiding IPO issues, having burnt their fingers in earlier cases.
The CSE has removed the minimum brokerage fee of Rs.10 and the minimum CDS fee of Rs 5 with brokerage fees being 0.64% and CDS at 0.024 % on transactions of upto Rs 50 million, with effect from April 10.
Brokers said these changes were the outcome of recent discussions with the authorities.
They said that high net-worth investors and fund managers are reluctant to place orders due to the fear of being saddled with an odd number of shares which will increase their costs.
Other analysts said the retail sector would benefit from these changes, especially when they need to round up their portfolio with the purchase of a small quantity of say five or15 shares. Some investors believe this is a move to increase activity in the market by restoring interest in the retail sector. The impact of these changes will be clear only after the holidays, they said. |
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