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Sri Lanka stock market introduces instant CDS account opening

ECONOMYNEXT- Sri Lankans hoping to invest in the Colombo Stock Exchange can now instantly open an account with the Central Depository System (CDS) through a broker, a statement said.

“The decentralisation of the account opening and investor portfolio transfer process would provide impetus for greater efficiency,” CDS Head Nalin Fonseka said.

“The ‘ease of doing business’ is a key parameter for prospective investors and this initiative would enable stockbroker firms with the required decision-making ability within the account opening space,” he said.

Fonseka said the new facility will give greater convenience for both brokers and investors.

A CDS account is essential to trade on the local stock market. The new decentralisation process eliminates the need to forward application forms and connected documents to the CDS and wait for approval to open an account.

Investors can now trade immediately.

“Stockbrokers have also been given the ability to carry out broker-to-broker portfolio transfers without the intervention of the CDS, thus providing convenience of a faster service to their clients,” the statement added.

“This empowerment would grant stockbrokers a greater level of flexibility to service investors more efficiently and in a timely manner.”

Know your customer processes have been streamlined, the statement said.

“Stockbroker firms have played a lead role in ensuring a smooth transition to this globally accepted practice which is set to uplift industry standards and place them in par with peers globally.” (Colombo/Feb18/2020)

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