Capital TRUST Credit (Pvt) Ltd.
Founded in 2010, Capital TRUST Credit (Pvt) Ltd is a Margin Trading provider, licensed by the Securities & Exchange Commission of Sri Lanka.
The company utilizes a proprietary Margin Trading system to cater to over 1,200 clients which is the largest number of clients in a Margin Trading Company in Sri Lanka.
The company provides new facilities with a quick turnaround time, which is an unparalleled industry benchmark.
What is Margin Trading?
Opening and operating a Margin Trading Account
In order to obtain a Margin Trading facility the client has to fill up a Margin Trading application form and enter in to a Margin Trading agreement,which is a tri-partite agreement between the margin trading provider, the client and the stock brokering firm.
Upon entering in to the Margin Trading agreement the client is offered a margin trading facility with an upper limit based on the value of the existing share portfolio. The client is allowed to purchase shares up to the limit subject to a margin of 50% of the value of the share portfolio pledged.
By utilizing the margin trading facility the investor can settle the outstanding balance remaining with the broking company or/and purchase additional securities subject to the upper limit of the margin trading facility and a margin of 50% of the value of the portfolio pledged.
All the purchases and sales that are carried out with the stock broking company are settled by Capital TRUST Credit (Pvt) Ltd on the settlement day which is on the third market day after the transaction takes place, with a seamless transfer of funds between the stock broking company and Capital TRUST Credit (Pvt) Ltd.
Further upon grating the margin trading facility the client is offered the access through the internet to proprietary Margin Trading system of Capital TRUST Technologies (Pvt) Ltd,where the clients can view the relevant records pertaining to the their margin trading facility including Loan Account statement, Portfolio Statement, Interest Account Statement, Margin Status Report etc.
Advantages of Margin Trading
Margin trading provides numerous advantages to an investor and some key benefits associated with margin trading are as follows.
Increased Buying Power – Investing with a margin trading facility allows an investor to purchase a greater number of securities than been able to purchase with own funds, thereby giving a larger exposure to the market and the possibility of greater returns whilst diversifying the rick. Further the additional funds available provide the investor an opportunity to look for bargains available in the stock market and to benefit from it.
Flexibility on utilization and repayment – The investor could utilize only the amount required for the investment rather than drawing a fixed amount and there are no minimum monthly payments or regular repayment criteria on a margin trading facilities. The utilization and the repayment could take place as per the investor’s discretion which provides a greater flexibility over many other financial products.
Board of Directors
Mr. Wickramasinghe is the Chairman/CEO of Capital TRUST Holdings Group of Companies which has expanded into many areas of businesses, including Financial Services, Property Development, Real Estate Solutions, Margin Trading, Investment Advisory, Wealth Management, Information Technology, Education, Packaging and Investments. Mr. Wickramasinghe has been credited for arranging many of the strategic transactions in the Colombo Stock Exchange and under his leadership the company has achieved many significant milestones.
He is the Chairman of ALFT Packaging Co. (Pvt) Ltd. He was also a Director of Lanka ORIX Leasing Co. PLC, People’s Merchant Finance PLC, and E-Channeling PLC.
He is also the Founder Director of Shakthi Institute, an educational institute with over 15,000 registered students.
He holds a Master of Business Administration from the Edith Cowan University in Australia.
Director / Chief Financial Officer
Mr. Senavirathne is the Chief Financial Officer of Capital TRUST Group of companies and Director of Capital Trust Securities (Pvt) Ltd. Mr. Senavirathne is a Fellow of Chartered Certified Accountants (ACCA) UK, Fellow of Chartered Management Accountants (CIMA) UK and holds a MBA from the University of Southern Queensland, Australia.
Prior to joining Capital TRUST, he was employed at Amba Research, where he acquired a wealth of knowledge in Global Financial Markets. Prior to that he was attached to Courtaulds Clothing, a Joint Partner of MAS Holdings.
He counts for over 20 years of experience in the fields of Accounting and Finance.
Mrs. Wickramasinghe is a Director of Capital TRUST Holdings Limited and most of its subsidiaries. She Heads the Real Estate cluster of the group.
She initially worked at DFCC Bank and Maersk Lanka. Thereafter she was the founder Director / Head of Corporate Training at Skills Lanka Limited, where she was instrumental in securing training for employees of a number of large companies and organizations in Sri Lanka.
Having studied in Nigeria, Australia and Hong Kong throughout her academic career, she brings in a new perspective to doing business in Sri Lanka.
She has obtained a BBA and a MBA from Edith Cowan University, Perth, Australia.