STOCKBROKERS HAIL THE DEVELOPMENT ORIENTED BUDGET
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- Created on Tuesday, 13 November 2012 11:17
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The Colombo Stock Brokers Association (CSBA), representing 23 Stock Broking companies has thanked the President Mahinda Rajapakse on the unprecedented policy initiatives proposed to develop the capital market in 2013 according to the proposals included in the National Budget presented in parliament on last Friday.
CSBA has further said that it, as one of the major stakeholders of the capital market of Sri Lanka are elated that the important and the urgent need to develop the capital market has been duly recognized by the President as the Finance Minister. The key proposals announced in the Budget impacting the capital market demonstrate the desire of the government to see a vibrant capital market in the immediate future, the CSBA has further said.
CSBA has also expressed their gratefulness to Dr.P.B.Jayasundara ,the Secretary to the Treasury, for giving due considerations to the urgent needs of the capital market when formulating the budget proposals for 2013.
"Introducing a 3-year 50% tax holiday for new companies to be listed at the CSE with a public float of at least 20% on or after 01/04/2013, exempting stamp duty for the transfer of shares to and from margin trading account effective from 01/01/2013 are some of the measures that will translate into improved liquidity at the Colombo bourse. Permitting lump sum depreciation up to 100% for the stock broking companies for IT infrastructure development and branch office establishment with effect form 01/04/2013 would no doubt help the market intermediaries to evolve into full fledged brokerage houses on par with their peers in the international arena. Proposals impacting the debt market and the unit trust industry are also very encouraging." the CSBA has added.
CSBA has also praised the proposal of the President to appoint a Presidential Task Force to implement a Capital Market Development Master Plan. It said that they see this as the most important proposal impacting positively on the capital market and h President for the long term vision to create and nurture a capital market that would contribute towards nation building.
"We also take this opportunity to thank the SEC Chairman for submitting market positive proposals during the budget preparation stage while supporting the CSBA’s proposals and following a consultative approach since his appointment" CSBA has further stated.
