Sri Lanka SEC clears new listing framework, autonomy for CSE, broker guidelines

ECONOMYNEXT – Sri Lanka’s Securities and Exchange Commission said it has approved a new framework for listing companies giving more autonomy for the Colombo Stock Exchange and also cleared supervision guidelines for brokers.

The SEC said it had been talking with stakeholders to take ‘aggressive measures’ to develop the market and make it the preferred place to raise capital.

“The Commission at its meeting held last Wednesday approved a new framework for listing of companies, affording complete autonomy to the CSE in the process and has also relaxed the Listing Rules in order to encourage more listings,” the regulator said.

“This is expected to attract SMEs and Startups and many other initiatives are in the pipeline”.

The regulator said the CSE is expected to start a program with a time bound plan to draw companies into the market backed by the incentives given by the budget.

Amid a recent surge in market transaction “the regulatory and supervisory framework of the SEC have strengthened by enhancing the capability and capacity of the supervision and surveillance divisions,” the regulator said.

SEC said it had been pushing for self-regulation of the broking industry especially extending broker credit and other market activities.

The CSE and SEC had prepared a draft supervision guidelines for broker firms to maintain industry best practices.

“Approval had been given by the Commission last Wednesday to implement the guidelines. At the request of broker firms a surveillance handbook had also been prepared by the stock exchange which details prohibited conduct.

A new SEC Act which is expected to be legislated in the first quarter will also strengthen and streamline the regulatory regime, enable the development of the market, provide protection to the investors and provide for the demutualization of the Stock Exchange. (Colombo/Jan16/2021)

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