Digitalisation of the Colombo Stock Market

Digitalisation of the Colombo Stock Market

The Securities and Exchange Commission of Sri Lanka (SEC) has approved amendments to the Stockbroker rules, Central Depository System (CDS) rules and the Listing rules proposed by the CSE to enable the stock market to move to a digitised environment.

Investors who previously had to submit physical documents to a licensed Stockbroker to establish CDS accounts, may now submit them online. Investors may also trade online once CDS accounts are established and effect transaction settlements electronically.

Dividend payments may be made electronically. Listed companies may elect to circulate their Annual Reports to shareholders and debt security holders (“Securities Holder”) in a mode other than in printed form. Annual reports are still required to be provided in printed form at the written request of the Securities Holder.

Monthly account statements and Bought and Sold Notes issued by stockbroker firms to their clients are permitted to be sent electronically, and in this connection CDS account holders are required to furnish their e-mail address, mobile number and bank account details prior to 10th September 2020 by submitting the e-Service form. CDS accountholders may still request (in writing) for the accounts statements in printed form.