Faster financial data delivery needed to fight inside information: CSE chairman


by Sanath Nanayakkare

"Although the standards of our corporate financial reporting are a lot better than most of our neighbouring countries, we need to improve on the speed at which this information is disseminated to the interested parties and the general public, or otherwise the prevalent information gap can easily be construed as giving rise to inside information, CSE chairman Vajira Kulatillake told The Island Financial Review last week.

"Foreign investors are happy with the standards of our financial reporting and information. But it is not going out at a desirable speed as with Bloomberg breaking news or other swift electronic information channels that provide real-time updates to financial metrics. Accelerated speed of information is necessary for more credible and effective trading among all stakeholders. There's room for us to improve on this very important aspect", he said.

Commenting on financial literacy among the people who are not so financially savvy, the CSE chairman said, "Financial literacy is one of the most important investor basics, especially if you want to be a safe investor. Someone who is not financially literate cannot see into an investment, the facts and the fiction surrounding it. The truth, the opportunities and the risks it represents. Many people say that investing is risky is because they have never been taught to read financial statements. This situation is true even for many people in the United States of America, but when they want to invest and make money, they go to right investment advisors who give advice about securities. You only have to make sure that you seek advice from firms that are not deceitful or fraudulent, and are acting on principles".

"A Unit Trust or some corporate debt can give you fixed income. You have to select the right fund for the right reasons and not for avarice. A thing of prime importance is your ability to take risk. Speaking for myself, I can't go for equity because I can't bear the fluctuations in the market. If that's the case with you, you should go for a fixed income investment tool".

"Financial literacy is not the only crucial factor. The time you can or cannot spend on studying the market dynamics is an equally important factor. One can be a highly competent lawyer who fully understands financial statements, announcements etc. but if he or she doesn't have the time to focus on it consistently, they'd be at stake".

CSE chairman made these comments speaking to The Island Financial
Review after CA Sri Lanka launched the registration process for its prestigious 52nd Annual Report Awards Competition, at the Galle Face Hotel last Thursday.

CA Sri Lanka is now accepting applications for the coveted Annual Report Awards Competition, which is one of the most celebrated corporate events in the country. The competition is open to any organisation ranging from multinationals, conglomerates, NGOs, to SMEs that produces an annual report. Entries for the 52nd Annual Report Awards Competition will close on September 9. The winners will be announced in December this year.143 companies had competed in last year's competition, and this number is expected increase to at least 150 this year given the value the recognition from this competition adds to a company.


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