The Securities and Exchange Commission of Sri Lanka (SEC) considering the impact caused to investors as a result of the drop in valuations of listed securities on or about March 11, 2020 has decided to grant a moratorium to the clients of all licensed Stock Brokers and registered Margin Providers from the payment of interest on credit extended to them, which are due during the period commencing March 11, 2020.
This decision has been made upon considering the decisions taken by the Central Bank of Sri Lanka to set up a Re-financing Facility to implement the decisions taken by the Cabinet of Ministers on March 20, 2020 to introduce a wide range of fiscal and financial concessions to those who have been adversely affected due to the unprecedented situation presently prevailing in the country,” said Director General, SEC Chinthaka Mendis in a release.
“Therefore all licensed Stock Brokers are hereby directed to pass on the benefit they will derive from the decisions announced by the Central Bank of Sri Lanka to their clients and are directed to refrain from charging and recovering interest on credit extended to their clients until June 30, 2020.
This will be a temporary measure and the Securities and Exchange Commission of Sri Lanka shall monitor and review the impact of this directive from time to time and shall reserve its right to amend, vary or repeal this directive any time before or after June 30, 2020 if deemed appropriate.”
The Colombo Stock Exchange is hereby directed to inform all licensed Stock Brokers of this directive forthwith.
This directive shall be effective from the date hereof until June 30, 2020.