Asanga’s Nations Lanka resumes trading 

Nation Lanka Equities (Pvt) Ltd (NLE), which was prohibited from stock trading activities owing to struggles with liquidity issues, is back in the game. 
“The company has fulfilled all the requirements and started trading on Monday,” a Colombo Stock Exchange (CSE) official told the Business Times.
The company owned by long standing stockbroker, Asanga Seneviratne with 58.57 per cent was non compliant with the liquidity requirements effective from October 2017. It failed to maintain Securities and Exchange Commission's (SEC) minimum shareholders' funds, stockbroker minimum Capital Adequacy Ratio (CAR) and minimum liquid capital requirement (Rs. 35 million).  It was barred from trading in April 2018. The official added that Mr. Seneviratne had infused the Rs. 100 million minimum shareholders' funds and fulfilled the other two requirements recently earning him the licence again. 
The SEC announced moves to hike the risk based CAR for stockbrokers from March 1, 2017 which hit many firms in the industry. Each stockbroker was directed to maintain a capital requirement / liquid capital of 1.2 times the total risk - subject to a minimum liquid capital requirement of Rs.35 million. The CAR rules mandate stockbrokers to report their CAR to the SEC and CSE on a daily basis. The SEC said that CAR is to ensure that stock broking firms are strong enough to withstand any shocks and ensure a sound capital market.
Along with NLE, Navara Securities (Pvt) Ltd (NSL), TKS Securities, Claridge Stockbrokers were stopped from conducting business two years ago. (DEC)