New rules on the way for market intermediaries, property valuations

The Securities and Exchange Commission (SEC) will be revamping a whole set of rules for the capital market along with setting guidelines for valuing listed company properties, officials said.

The Colombo Stock Exchange ( CSE) listing rules, stockbroker rules and other market intermediary rules will be overhauled, they said.

The rule changes will be made for market intermediaries such as rating agencies, fund managers, stockbrokers, underwriters, unit trusts, margin providers and investment managers.

There will be additions to the declaration that directors have to make to the CSE when they're appointed.

The SEC will also come up with the ' proper' system to value listed company properties.

Additionally, the SEC is looking at a fresh corporate governance code for CSE-listed companies.

Earlier the CSE and the Institute of Chartered Contents of Sri Lanka (CA Sri Lanka) had a corporate governance code together with the CSE for all companies. CA Sri Lanka formed a separate code some two years ago.

The official said that the SEC is exploring the possibility of a new code for listed companies. "The CA Sri Lanka code was for all companies. The one the SEC will formulate for the CSE will be for listed companies," the official explained.

He added that Chairman and CEO roles will be separated in this code. Last year the SEC called for a published consultation paper on ‘Segregation of Chief Executive Officer and Chairman Role, Performed by One Individual in Listed Entities’ but it failed to go forward. “Separating the high-profile positions of chairman and CEO can help to strengthen the overall integrity of a company,” the official explained.