• SPACs and over-the-counter trading of paper gold products among fresh initiatives in the offing

As part of furthering capital market development, the Securities and Exchange Commission (SEC) is promoting several new investment options, some of which are first-of-their-kind in Sri Lanka.

Chairman Viraj Dayaratne PC told the Daily FT that the SEC has approved in principle Special Purpose Acquisition Companies (SPACs) with the relevant framework in place. 

Explaining SPACs, he said: “A sponsor (reputed individual or company) lists a shell company with an IPO. Funds raised (from accredited investors initially) will be utilised to acquire willing unlisted companies. CSE has been tasked to come with the rule/guidelines.”

The SEC is also promoting ‘over-the-counter’ trading of paper gold products and the framework has already been approved in principle. 

See page 12 for the Daily FT’s exclusive interview with the SEC Chairman, in which he recaps the recent performance of the Colombo stock, including the bull run and the correction, his outlook on the future of the capital market, measures SEC has championed to ensure wider public participation, and how the new administration is addressing the core function of regulating the market. Dayaratne also shares insights into what is on offer next in the digitalisation rollout, the status of the new SEC Act, Delivery versus Payment, and demutualisation of the CSE. 

SEC Chief outlines challenges of regulating and reinvigorating the capital market