Banks Offer Margin Trading Facilities to Colombo Stock Exchange Investors Following Regulatory Action

05th December 2010, www.thebottomline.lk, By Jithendra Antonio

Following the local capital market watchdog’s reiteration of its policy to curb brokers providing credit facilities without a margin trading licence, many banks have now taken steps to come with margin trading products targeting the investing community in the stock market.

A few of the banks which have started margin trading units are Commercial Bank, Pan Asia Bank and Seylan Bank.

Meanwhile, Capital Trust Securities, the leading stock brokering house in the country, has launched a separate subsidiary to cater in terms of funds to their clients who have less than Rs.1 million portfolios.

“We have applied for a margin trading application and now we can provide margin trading to all our clients under our new sister company Capital Trust Credit (Pvt) Ltd,” said the director of Capital Trust Securities (Pvt) Ltd, Sarath Rajapakse speaking to The Bottom Line.

Similarly, Asha Philips has also started facilitating margin trading to its clients, according to market sources.