Stock Borrowing & Lending

A seminar and panel discussion on stock borrowing and lending is being jointly organized by Merchant Bank of Sri Lanka Ltd., and Lanka Securities (Pvt) Ltd., says a press release. The key speaker would be Akbar Naqi of First Capital Equities Ltd, (FCEL) Pakistan who will share his practical experience on applying stock borrowing and lending (SBL) in portfolio management.

Hiran Mendis, Director General Colombo Stock Exchange (CSE) will speak on SBL which was introduced to Sri Lanka last year. A panel discussion will follow. Neomal Gunawardena, Partner Nithya Partners will deal with the legal aspects, S. Sockalingam, Technical Director Institute of Chartered Accountants of Sri Lanka will address the accounting practices and Premila Perera, Partner K. P. M. G. Ford, Rhodes & Thornton & Co will discuss the tax implications involved. The seminar will be held at Colombo on February 20.

Although stock borrowing and lending is a new concept to Sri Lanka, it is popular among investors and fund managers in other emerging, as well as developed stock markets. This is a method to take profits from a declining market and is used to generate an income from the portfolios of strategic investments without exiting from the stocks.

Naqi, who is an expert in the field of portfolio management is Director/Company Secretary of FCEL Pakistan. He oversees the company’s retail operations in Islamabad and was the main contributor to turn around its business, which was affected by continuous business decline for several months. Naqi’s experience includes private client advice and discretionary portfolio management. He will be sharing his experience in stock borrowing and lending with Sri Lankan investors and will "educate our investors" on how to make profits from SBL.

"The seminar will be of particular interest to fund managers, individual and institutional investors dealing in the CSE," it added.