Sri Lanka to enforce tougher stock market rules from January 2018
Oct 16, 2017 15:38 PM GMT+0530 | 0 Comment(s)
ECONOMYNEXT – Sri Lanka’s markets regulator said it has decided to adopt a more stringent policy of enforcement of listing rules with tougher regulations to be enforced from 1 January 2018.
The Securities and Exchange Commission said it has asked the Colombo Stock Exchange to incorporate several rules drafted in relation to violations of rules on corporate governance of listed companies.
These include late submission or non-submission of interim financial statements and annual reports and the incidence of modified audit opinions and incidence of an emphasis of matter of going concern in audited financial statements.
Under the new rules, listed firm must give to the CSE for public release an ‘impact report’ containing a detailed description on the impact of the audit qualification to the financial statements.
At present CSE listing rules do not contain any rules on action to be taken by the CSE in the event the audit opinion in the annual report is found to be a “modified audit opinion” or contains an “emphasis of matter on going concern”.
The impact report shall at a minimum contain cumulative impact on profit or loss, net assets, total assets, turnover/total income, earnings per share and any other financial item(s) which may be impacted due to qualified audit opinion.
Listed companies will also be required make an announcement to the market via the CSE on the qualified audit opinion, stating remedial action adopted or proposed to resolve the matters set out in the qualified opinion.
(COLOMBO, October 16, 2017)