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Margin Trading

Peoples Merchant Finance PLC (PMF) is licensed as a margin provider under the category of a Market intermediary from the Securities and Exchange Commission of Sri Lanka

Margin trading is a popular product with traders who trade frequently on the stock Exchange. Peoples Merchant Finance PLC is competitively positioning itself to service the mid range segment of borrowers.Most margin providers are servicing high net worth clients with large margin limits and few margin providers service the mid range segment.

Peoples Merchant offers competitive and attractive rates of interest for this segment and this is the latest product to be added to its product portfolio.

Margin Trading is where an Investor pledges his/her Securities to a Financier (licensed margin provider) and obtains credit against the market value of the quoted share portfolio which is pledged to the Financier and thereafter purchases securities from the secondary market through a licensed stock broker.

The Borrower has to enter a Margin lending/trading Agreement pledging his/her Share Portfolio to the Financier. The Margin lending/trading Agreement is a Tri-party Agreement between the Financier, Borrower and the Stock Broking firm.

For more details please contact either Anuki or Anuradha from our Corporate Finance and Trade Finance division on 2300191 – 4.

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