tag:blogger.com,1999:blog-7167149547535484177.post1736611176835636350..comments2024-01-20T14:08:08.057+05:30Comments on Serendipity: in the hot seat in a forced sell situationRatmale,Minneriya,Sri Lankahttp://www.blogger.com/profile/17252632858481217930noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-7167149547535484177.post-68567943784922514842011-03-16T16:25:37.499+05:302011-03-16T16:25:37.499+05:30I heard a story that one particular broker had aro...I heard a story that one particular broker had around Rs1bn in such credit at one time, when the rules came up last year.Jack Pointhttps://www.blogger.com/profile/00324737814154929009noreply@blogger.comtag:blogger.com,1999:blog-7167149547535484177.post-70588439000451341862011-03-16T14:12:00.503+05:302011-03-16T14:12:00.503+05:30In our case we have only about 4% of our debtors i...In our case we have only about 4% of our debtors in this situation with hardly an affect on profit let alone net capital.<br /><br />So there is not an issue for thefirm or the CSE except for the guy who is being forced sold, who is the person I was referring to as being the worst affected; the small retail investor who is about to lose his life savings!Ratmale,Minneriya,Sri Lankahttps://www.blogger.com/profile/17252632858481217930noreply@blogger.comtag:blogger.com,1999:blog-7167149547535484177.post-58632869967815157622011-03-16T14:04:56.001+05:302011-03-16T14:04:56.001+05:30I completely agree with Jack's point (forgive ...I completely agree with Jack's point (forgive the pun Jack), which is the intention of the CSE anyway. However in the interim period how we get there has to be managed without decimating the poor small investor, who finds it difficult to open a margin account due to his lower requirements.<br /><br />In an illiquid market forced selling to reach mandatory targets actually means investors sell at 30% less than their cost.<br /><br />Now that the big boys have moved into margin accounts the brokers don't have a credit or payment problem as their net capital is sufficient to meet all potential liabilities.<br /><br />Just help the small guy out so he will return with dignity, not with hate!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7167149547535484177.post-11663342075571280102011-03-16T12:24:02.821+05:302011-03-16T12:24:02.821+05:30I think this market has a huge problem with credit...I think this market has a huge problem with credit. If this is not sorted out we may experience a a default by a broker with a resultant chain reaction, of counterparty defaults, in the same way that the investments banks collapsed in the US.<br /><br />My suggestion is that there should be a clearing house set up to handle all settlements with no intervention by the brokers. Individual customers need to settle with the central clearing house (run independently) so there is no accumulation of unsettled debts under one broker and there is full transparency of liabilities.<br /><br />We don't want to end up with riots, like in Bangladesh, do we?<br /><br />http://www.bbc.co.uk/news/world-south-asia-12033373Jack Pointhttps://www.blogger.com/profile/00324737814154929009noreply@blogger.comtag:blogger.com,1999:blog-7167149547535484177.post-36534492709872043412011-03-16T11:41:11.719+05:302011-03-16T11:41:11.719+05:30It is a sad case of poor becoming poorer in the at...It is a sad case of poor becoming poorer in the attempt to find some extra cash....<br />The rich are raking in the millions of tax free money... Regulator is there to safeguard the Rich bugger's interest because he has the money to pamper the regulator with gifts & etc...<br />It just shows the reality of the Sri Lankan situation.... Poor man is between a rock and a hard place...Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7167149547535484177.post-32492785912719139492011-03-16T08:22:25.997+05:302011-03-16T08:22:25.997+05:30another instance of regulators not knowing the ult...another instance of regulators not knowing the ultimate goal or purpose of their existence and using it merely as a power or ego trip to control others due to personal weaknesses on their part getting in the way of the ultimate purpose.<br /><br />A typical attribute of bureaucracy worldwide, but particularly bad in SL case as most bureaucrats here are unqualified for the job!!!Anonymousnoreply@blogger.com