The Colombo Stock Exchange (CSE) is the
only Stock Exchange in Sri Lanka. There are 243 companies listed on
the Exchange. Quotations have been granted to 247 equities and 36
Debt Securities as at 30th June2002. Companies can seek a listing
either on the Main Board or the Second Board of the Exchange to list
debt or equity. The Listing Rules have been structured to offer maximum
flexibility to companies to raise debt and equity. Listed companies
are subject to a set of continuing listing requirements, which have
been designed to secure the confidence of investors by ensuring that
companies will provide sufficient information to enable investors
to form a reliable basis for making informed investment decisions.
Companies that do not adhere to continuing listings requirements are
transferred to the Default Board.
The CSE is a member of the WFE (International Federation of Exchanges).
The market capitalisation of the CSE as at 30th June 2002 was Rs.144
Billion (US $ 1.4 Billion). This amounts to 10.2% GDP. Listed companies
are classified into 20 sectors.
The CSE is characterized as one of a mutual exchange which operated
on a not for profit basis. The CSE is licensed by the Securities and
Exchange Commission of Sri Lanka (SEC). Presently, it has 15 institutional
members, all of whom are licensed by the SEC to act as stockbrokers.
The Exchange operates an order driven market using an automated screen
based trading system and an automated post trade clearing and settlement
system. It has a Central Depository and trading is script less. The
Central Depository System (CDS) provides facilities for the clearing
and settlement of securities. The CDS is a fully owned subsidiary
of the CSE. Trading takes place on all week-days (Monday to Friday)
between 9.30 a.m. to 12.30 p.m.
The Colombo Stock Exchange is structured as a Self Regulatory Organisation
(SRO). It is responsible for regulating Member Firms (stockbrokers)
and Listed Companies. As a modern exchange, The CSE now offers state-of-the-art
technological infrastructure to facilitate an "order driven trading
platform" for securities trading, for shares and corporate debt
securities.
Foreign investment in the stock market is freely permitted except
in the case of a few companies where there are certain restrictions
imposed.
There are no taxes imposed on share transactions except for a 10%
withholding tax on dividends.
On-line and historical market information is available internationally
and locally through data vendors and the exchange.
Member firms publish regular research reports and the CSE publishes
market information on a daily, weekly, monthly, quarterly and annual
basis.
Further information on the CSE could be obtained from the Exchange
Web site www.cse.lk |
