Sri Lankan, Indian depositories to work together
COLOMBO (EconomyNext) – Sri Lanka’s Central Depository System (Pvt) Ltd (CDS) has entered into an agreement with India’s National Securities Depository (Pvt) Ltd that will lead to co-operation in settlement matters and operational linkages between them.
A statement said CDS, a subsidiary of the Colombo Stock Exchange (CSE), signed a Memorandum of Understanding with the NSDL for the purpose of knowledge sharing in the area of depository services.
“We anticipate developing a closer working relationship with the NDSL and other regional depositories in the future, to maintain channels of communication for exchange of information,” Chairman of the CDS Vajira Kulatilaka said.
The NDSL is the largest depository in India, responsible for the establishment of a national infrastructure of international standards that handles most of the securities held and settled in dematerialised form in the Indian capital market.
“NDSL is seen as the ideal partner for the CDS in its trajectory of growth for the future as a leading service provider for the financial services industry in Sri Lanka,” the statement said.
“The CDS hopes that by knowledge sharing with the NDSL it will strive to adopt industry best practices and reach its diversified goals of being a service provider to a series of stake holders in the capital market while face emerging market challenges.”
It said the MoU intends to explore opportunities for cooperation between the two depositories, establish a basis for cooperation in depositary and settlement related matters, and establish operational linkage between the two depositories.
The CDS was upgraded in November 2014 with the launch of a new generation Central Depository System and upgrades to the Automatic Trading System (ATS).