Initiative to digitalise Colombo stock market begins

A Joint Committee between the Securities and Exchange Commission of Sri Lanka (SEC) and the Colombo Stock Exchange (CSE) was formed with the objective of identifying measures and mechanisms required for the Colombo Stock market to conduct its core activities digitally.  

The first phase of this initiative was launched and under this initiative, it has been decided to convert paper-based statements to electronic form and to facilitate companies listed on the CSE to pay dividends electronically to shareholders. 

Under the existing rules, stockbroker firms and the CDS use paper-based statements except where accountholders and clients of stockbroker firms have specifically requested for statements to be sent electronically.

Similarly, the existing listing rules have provided for the issue of Annual Reports in a CD ROM form and most companies follow this method of issuing Annual Reports.  

The stockbroker rules have been amended to make it mandatory for the Stockbroker Firms to dispatch Bought and Sold Notes and statements of accounts by electronic means to their clients.

The CDS Rules have also been amended to make it mandatory for the CDS to forward the CDS statements in electronic form to an email address provided by the accountholder through the relevant stockbroker firm / CDS participant. 

The listing rules have been amended with a view to facilitating listed companies to credit the dividend proceeds directly to the respective bank accounts of the entitled shareholders who have provided accurate information of their bank accounts.

The listing rules have been further amended to provide the flexibility for listed companies to issue the Annual Report in a mode other than in printed form. 

In order to facilitate a smooth transition, all CDS accountholders will be requested to furnish the following details to their stockbroker/participant prior to 10 September.  They are: email address, mobile number and bank account number, name of bank, and branch.

The information must be provided by submitting the duly completed CDS 28 - e-Service form by the CDS accountholders to the registered stockbroker/participant. The Form can be downloaded from www.cse.lk, www.cds.lk, or the same can be collected from stockbrokers/participants.