First phase of initiative to digitise CSE launched

As the first course of action of the joint committee between the Securities and Exchange Commission (SEC) and Colombo Stock Exchange (CSE), it has been decided to convert the paper-based statements to electronic form and to facilitate the companies listed on the CSE to pay dividends electronically to shareholders.

Under the existing rules, the stockbroker firms and CDS use paperbased statements, except where the 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.

A CSE statement said 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 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 the 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 the 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 their e-mail addresses, mobile numbers and bank account number and the name of bank and branch, to their stockbroker/ participant, prior to September 10, 2020. The CSE said the required 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.