Backdoor tactics by some brokers on split of CSE demutualisation

The demutualisation process that has been dawdling for a while owing to dissent between the Securities and Exchange Commission (SEC) and brokers over the percentage that the latter should own after demutualization, has taken a new turn.  
Government officials said that certain high profile stockbrokers had approached a State Minister on Tuesday to change the 60 per cent shares in the Colombo Stock Exchange (CSE- which is what the SEC is willing to part as the share value for the brokers) to 70 per cent. 
With the SEC Demutualisation Bill to be presented to Parliament on Wednesday (tomorrow), the officials are miffed that the SEC is being pressurised into amending the already agreed percentages through the Legal Draftsman a day prior to its presentation in parliament. It wasn’t clear if such amendments were possible after the Cabinet had approved this Bill.

With the 60 per cent that SEC is willing to part with, the balance 40 per cent will be channeled to the capital market development fund.

What has come of the situation wasn’t clear by noon on Tuesday. Attempts at contacting SEC officials failed. 
Brokers argue that they deserve more as they started the CSE more than three decades ago without any assistance. But the regulator says that this was agreed after lengthy discussions with capital market experts and that 60 is the number. With the 60 per cent, each broker will get a maximum of 5 per cent. 
Demutualisation has been discussed for more nearly a decade, with officials noting that it’s about time something actually happened. (DEC)