Sri Lanka's Bank of Ceylon Takes Stock Trading to Rural Areas with stock brokers, Lanka Securities

08th April 2011, www.asiantribune.com, By H D Herat-Senewiratne

It is reported that only few people in the Sri Lankan community are actively involved in the stock market business especially in the Western Province and few other metropolitans outside the Western Province and it is due to lack of awareness and minimum access for rural people to enter into this type of alternative investment avenues.

Most people still earn incomes through traditional methods such as investing in treasury bills/bonds and banking other than investing in the stock market.

Many are unaware of the stock trading which is more lucrative than any other money making business, with the currently low interest rates, a stockbroker told the Asian Tribune .

Recently, Bank of Ceylon (BoC) took a giant step by signing a contract with a stock brokering company Lanka Securities (Pvt) Ltd to promote and to take stock brokering business into rural areas through its 307 bank branches and 160 extended offices through their network.

“At present, the stock market business is mainly confined to main cities especially in the Western Province and few other places outside the Western Province. Therefore with this agreement we could be able to promote the stock trading business island-wide more effectively and efficiently, it Deputy General Manager (Investment) P.A Lionel told the Asia Tribune.

He said the purpose of this move is to educate the public on the alternative investment avenues and to facilitate and promote the stock market business among the rural masses through its branch network. Initially, this service would be available in 250 BoC - Super Grade and A-Grade branches, “With the passage of time we will be linking with all branches and extended officers to promote this business island-wide, Mr. Lionel said.

Mr. Lionel said that promoting stock brokering business in rural areas through stock brokering firms is not viable other than this method. Therefore, they are now in the process of training special officers on this subject to house in their respective branches.

“The people have a lot of trust and confidence with BoC therefore we could promote the stock brokering trading/brokering through Bank of Ceylon network in the future, “he said.

Lanka Securities (Pvt) Ltd provides Equity Trading, Strategic Deals, Privatization arrangements and Corporate Finance related services. The company also boasts of a highly experienced and dynamic Sales team specializing in servicing both local and foreign, retail, high net-worth and institutional clients.

Further, the company has a fully automated and integrated front office, research unit and a back office supported by an up to date database and an efficient IT division. Hence, it ensures that trades are executed in an efficient manner, with maximum speed and accuracy.

Lanka Securities (Pvt) Ltd firmly believes in aggressive but responsible marketing strategies to ensure total customer care and satisfaction, its sources said.

Lanka Securities (Pvt) Ltd is a joint venture Stockbroking firm with First Capital Securities Corporation (Pakistan), Bank of Ceylon and Merchant Bank of Sri Lanka. The BoC together with Merchant Bank owns 49 percent shares of Lanka Securities. This company is a licensed member of the Colombo Stock Exchange is operating in the Sri Lankan Equity market.