SEC orders CSE to temporarily shut down stock market – The Island

“Preferred choice of upset investors”

The Ceylon Chamber of Commerce (CCC) in a letter to the Chairman of the Securities and Exchange Commission (SEC), Viraj Dayaratne, said there was absolutely no need to temporarily close the stock market at this stage, which which could send the wrong signal to everyone. investors around the world.

“We were appalled by your decision to close the market for five days from April 18.” says CCC.

“This action will be viewed by market participants as an untenable attempt to hold the exchange rate constant in the face of market forces.” they said.

“As the Chamber pointed out when the market was closed at the onset of the COVID -19 pandemic, the sudden market closure is currently creating many challenges for local and foreign investors,” noted the CCC.

The Ceylon Chamber of Commerce, a confederation of business associations, regional and sectoral chambers of commerce and industry, bilateral trade councils and employers’ organizations in Sri Lanka, cited three situations that pose challenges for investors local and foreign due to the temporary closure of the stock market. They are next.

1. A group of investors (potential sellers) are prevented from exiting the market at a time and price of their choosing

2. Another group of investors (potential buyers) are prevented from acquiring shares at a time and price of their choosing

3. Not all investors will be able to perform valuations and mark-to-market their respective investment portfolios

The CCC further stated: “Given that there are circuit breakers in place to stop a sharp move in stock indices, we believe there is absolutely no need to close the market in this manner sending the wrong signal. to all investors worldwide. This action will be viewed by market participants as a failed attempt to hold the exchange rate constant in the face of market forces,” the letter reads.