COLOMBO (EconomyNext) – Sri Lanka’s stock exchange has reported that three broker companies did not maintain enough funds in their client bank accounts to settle creditors over the three-day settlement period.
“Three broker firms did not maintain adequate funds in their respective client bank accounts to settle the creditors over the T+3 balances for several months during the period,” the Colombo Stock Exchange revealed in its 2014 annual report.
It said two of the firms were in compliance with the CSE provisions relating to the adequacy of client funds by end-2014 and the remaining firm was in the process of taking “corrective actions” to comply with the rules.
The report also revealed enforcement actions carried out in relation to key violations of CSE stockbroker rules during 2014.
It said three broker firms were found to have failed to meet the minimum net capital requirement during the year but subsequently complied with the requirement within the time-frame set out in the stockbroker rules.
The report also said three stockbroker firms had been in violation of the single client credit limit of 15 percent of credit extendable during the year.
“Two firms have subsequently taken corrective actions to comply with the requirement,” the CSE said.
“The other firm has been unable to comply with the requirement as at 31st December 2014. The CSE continues to follow up with the firm on compliance.”
The CSE report also said one broker firm had been in violation of the credit extending limit of three times of adjusted net capital in 2014 but had complied with the requirement by year-end.
“Three broker firms did not maintain adequate funds in their respective client bank accounts to settle the creditors over the T+3 balances for several months during the period,” the Colombo Stock Exchange revealed in its 2014 annual report.
It said two of the firms were in compliance with the CSE provisions relating to the adequacy of client funds by end-2014 and the remaining firm was in the process of taking “corrective actions” to comply with the rules.
The report also revealed enforcement actions carried out in relation to key violations of CSE stockbroker rules during 2014.
It said three broker firms were found to have failed to meet the minimum net capital requirement during the year but subsequently complied with the requirement within the time-frame set out in the stockbroker rules.
The report also said three stockbroker firms had been in violation of the single client credit limit of 15 percent of credit extendable during the year.
“Two firms have subsequently taken corrective actions to comply with the requirement,” the CSE said.
“The other firm has been unable to comply with the requirement as at 31st December 2014. The CSE continues to follow up with the firm on compliance.”
The CSE report also said one broker firm had been in violation of the credit extending limit of three times of adjusted net capital in 2014 but had complied with the requirement by year-end.
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