June 24, 2015 (LBO) – Sri Lanka’s Security Exchange Commission says that it is looking at possibilities of introducing a mandatory rating for stock broking firms in the island.
“Stock broking companies perform an important role in the capital market by facilitating trades for investors,” Thilak Karunaratne, Chairman of SEC said.
“In the recent past the stock broking industry has progressed considerably in the provision of services as well as in terms of the number of players in the market,”
“In order to enable especially retail investors to select a stock broker by ascertaining the credibility of the firm, the SEC is exploring the possibility of introducing a mandatory rating for stock broking firms.”
He said it is envisaged that this rating will aim to preserve the integrity of the market and protect investor interest.
However Karunaratne said that the SEC will have an industry consultation before implementing this procedure.