A proposal to reduce transaction fees for equity investments is now being debated among regulators and stockbrokers.
SEC Director General Palitha Silva Gunawardene has long been an advocate for negotiable brokerage. He says high transaction costs are among the many factors that keeps investors away from playing in the market.rn
rnThe Colombo Stockbrokers Association is now proposing a 0.7 percent brokerage fee for transactions over Rs. 25 mn.rn
rnFor those under Rs. 25 mn, the fee would remain at 0.8 percent, says Asanga Seneviratne Chairman of the Stockbrokers Association and CEO of Asia Securities.rn
rnBut critics point out that a Rs. 25 mn floor is unrealistic, given that such transactions are few and far between.rn
rnSeneviratne agrees that the reduction is unlikely to spur investments but says his membership has limited options.rn
rnldblquote Equities are our mainstay and the Exchange has so far not come up with other instruments or products to increase our turnover,