CSE launches digitalised stock exchange
After 35 years, the Colombo Stock Exchange’s ( CSE) digitalisation was ceremoniously unveiled mid this month at the CSE, repositioning the country’s capital mobilisation efforts into the future.
With this, CSE has eliminated all paper and enable digital account opening, unflawed post- trade and settlement and implementing e- contract notes and e- statements. “For decades we have known what was required for our capital market, we knew very well how we could sophisticate our market. However, we have not done that, simply we were not ready when it really mattered. During the unprecedented lockdown, that this was the best opportunity to do the right thing, connect the dots and finish what we had put off for a long time by way of a SEC and CSE joint initiative,” Securities and Exchange Commission ( SEC)
Director General, Chinthaka Mendis said, addressing the gathering at the ceremony.
SEC Chairman Viraj Dayaratne, agreed in his speech saying, “The wakeup call from that slumber had to come in the form of the deadly COVID- 19 pandemic. The inability to keep the stock exchange open during the curfew that was imposed to curb the spread of this devastating pandemic exposed our deficiencies and made us think - and think of change. And that change had to come fast."
The digitalisation makes it easier for citizens to access and learn about the stock market, make it easier and more efficient to complete transactions – end- to- end; and make it cheaper to perform all these activities, Dumith Fernando, Chairman CSE said in his speech.
Now the CSE with its share depository/ transaction settlement arm, the CDS ( Central Depository System) can authenticate identities of persons opening accounts online.
As part of going digital, the CSE and the SEC on Monday ( inked an agreement with the Department for Registration of Persons to digitally verify details of account holders’ National ID ( Identity Card) number with their consent.
“The feature of obtaining consent is also built into the CSE App,” the SEC in a statement said.
Mr. Mendis added that the SEC has been particularly busy over the past few months, starting with the feasibility study of the entire stock market that they have been focusing on technical and regulatory reforms vis-à-vis to make the market business- friendly, particularly to make the market attractive for local and foreign investors.
He said that it’s no longer possible to sustain economic development at the cost of foreign debt and called on the Prime Minister, Mahinda Rajapaksa to not look elsewhere to raise capital to fund the ambitious development projects of his government.
Recalling the growth story of South Korea, where President Park Geunhye picked winners from the stock market with the likes of Samsung, Hyundai and LG that had the required potential and innovation to go beyond, he urged the premier to pick the winners from CSE- listed companies by looking at their potential, drive and commitment. “We need to incentivize and nurture such winners. We need to offer such winning companies to go out and compete with global giants to make headway in economic development, which would change the whole complexion of our stock market; it will convert us to a dynamic entrepreneurial state.”
Mr. Dayaratne called on the SMEs and start-ups to list in the CSE, saying that SEC has relaxed the listing requirements and there is huge potential to raise the much needed capital.