Margin Trading
What is Margin Trading?
Margin Trading is where an Investor pledges a Quoted Share Portfolio in his/her Central Depository System (CDS) Account to a financial institution and obtains credit up to 50% of the market value of the quoted share portfolio pledged. The 50% upper limit is the limit set by the Colombo Stock Exchange (CSE) and the Securities and Exchange Commission of Sri Lanka (SEC).
How to obtain this facility?
In order to obtain a Margin Trading Facility the Borrower has to fill up a Margin Trading Account Opening Form and sign a Margin Trading Agreement providing an Undertaking from the Stock Brokering firm pledging his/her Share Portfolio to the Lender. The Margin Trading Agreement is a Tri-partite Agreement between the Lender, Borrower and the Stock Brokering firm.
How it works / What is the process?
Password to this Web based software would be given to all clients and their Investment Advisors to view their Loan Account Statement, Portfolio Statement, Interest Account Statement, Margin Status Report etc relieving the need of having many executives to handle the functions related to Margin Trading.
Capital TRUST Securities facilitates the following Margin Trading Providers:
Capital TRUST Credit (Pvt) Ltd
People’s Merchant Finance PLC
George Steuart Finance PLC
