Sri Lanka stock exchange demutualization gets cabinet nod
ECONOMYNEXT – A draft law to demutualize Sri Lanka’s Colombo Stock Exchange into a for-profit company has received the approval of the cabinet, the state information office said.
A draft to demutualize the Colombo Stock Exchange will be published by gazette in a few weeks.
Prime Minister and Minister of National Polices, Ranil Wickremesinghe presented the draft law.
The Colombo Stock Exchange is now a company limited by guarantee which is mutually owned by founder stock broking firms, but it cannot distribute profits.
The demutualization will make the CSE a limited company with the stock brokers who were license earlier being entitled to shares in the exchange. Later licensed so-called trading members are not entitled to stock. (Colombo /Jan31/2018)