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Trading in shares made simpler
- By Sobhanund Seeparsad
- Published 11th April, 2008
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Sobhanund Seeparsad
Editor of News On Sunday. Did university studies in the UK and India. Holds an MA , BA (Hons), BCom, PGCE, PCCGE, Diploma in Journalism (IPI-Zurich). Worked in Nairobi and Mumbai. Was chief Sub Editor Indian Express Group of Papers in 70s. Author: Effective Notes on Milton Paradise Lost BK IX (1963); Granper Rakont Nu Enn Zistwar (1998). Also acted in many short and feature films, including popular TV serial C'est La Vie. Tells a folk story in Bhojpuri on MBC radio daily.
View all articles by Sobhanund SeeparsadSEM all set to improve liquidity
SEM investors can now buy and sell their securities even before the settlement day and hope for higher returns on their investments. Until now, turnaround trading was not allowed on the SEM. Securities purchased on a trading day could only be sold after settlement three business days later. This restriction affected liquidity on the market.
“Turnaround trading involves the selling of securities that have been purchased earlier during a trading session or during previous trading sessions and that have not yet been settled to take advantage of an upward movement in prices,” Vipin Mahabirsingh, Managing Director, Central Depository & Settlement Co. Ltd.(CDS), had assured News
On Sunday some time back. The measure would also reduce the risk of trade failure , he had assured.
The decision of the CDS and the SEM to implement turnaround trading and securities lending, it seems, aims at further developing the local securities market in line with best international practice.
The Financial Services Commission (FSC) has approved the implementation of turnaround trading and securities lending on the market.
This type of trading is allowed in many developed and emerging markets like Argentina, Australia, Bahrain, Brazil, Egypt, Hong Kong, Indonesia, Japan, Jordan, Korea, Malaysia, New Zealand, the Philippines, Singapore, Sri Lanka, Thailand, and Turkey, among others.
“Turnaround trading involves the selling of securities that have been purchased earlier during a trading session or during previous trading sessions and that have not yet been settled to take advantage of an upward movement in prices,” Vipin Mahabirsingh, Managing Director, Central Depository & Settlement Co. Ltd.(CDS), had assured News
The decision of the CDS and the SEM to implement turnaround trading and securities lending, it seems, aims at further developing the local securities market in line with best international practice.
The Financial Services Commission (FSC) has approved the implementation of turnaround trading and securities lending on the market.
This type of trading is allowed in many developed and emerging markets like Argentina, Australia, Bahrain, Brazil, Egypt, Hong Kong, Indonesia, Japan, Jordan, Korea, Malaysia, New Zealand, the Philippines, Singapore, Sri Lanka, Thailand, and Turkey, among others.
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1 Response to "Trading in shares made simpler"
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said this on 13 Apr 2008 6:13:02 AM MUT
I think it is good to increase liquidity in the market. However there is not a great amount of individual investors in the SEM. So i think this will bring problems such as short selling and it is encouraging arbitrageur to take opportunities that exist in the market. A final note, it is said that the rising prices on the SEM may be evidence of bubbles( a state where the prices goes on increasing. However the main problem is that the bubble will burst and may create a financial crash) if ever this is true, the action of CDS is good to implement such an action as arbitrageur will rule out bubble.
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