The Securities and Exchange Commission today relaxed the controversial 10 percent price band by reducing the period of market days to which public listed companies would be placed under the 10% price from 10 market days to 5 market days.
According to a statement by the SEC this measure was taken ‘having reviewed the current market conditions’. In the lead to the Avurudu and aftermath, the sentiments of the Colombo bourse had been damp, which eventually influenced the key indices negatively.
However the statement also that the regulator will continue to closely monitor market conduct, especially in relation to the price volatility in the market and will consider further relaxations if deemed fit.
“The SEC may re-impose any conditions that have been relaxed so far if the market conditions so warrant” the regulator cautioned.
The above said directive shall be effective from 29th April 2011.