Stock Exchange to open doors for five new members

The Colombo Stock Exchange is drawing up plans to admit at least five new members, but this time prospective applicants may have to bid for a license. The Colombo Stock Exchange is drawing up plans to admit at least five new members, but this time prospective applicants may have to bid for a license.

Stock brokering is now a profitable industry, and existing brokers say bidding is a transparent pricing mechanism.

The Colombo Stock Exchange says a final decision would be made at the next board meeting.

“That is currently being currently considered,” says CSE Director General Hiran Mendis.

“The procedure would be going to the next meeting of the board of directors and it would be decided at that meeting, finally, as to how we should proceed with new applicants.”

Capital Alliance Holdings and the Ceylinco Group are among those who have already applied.

Last year top brokers made profits of around Rs 20 mn, though profits were badly hit by a Value Added Tax charge that was imposed.

Some brokers say the time has come to admit more players, but new entrants would also have to play a role in market development and innovation