SEC Sri Lanka Circulars

SEC directs Colombo Stock Exchange to suspend enforcement for non-compliance

The Securities and Exchange Commission of Sri Lanka directed the Colombo Stock Exchange to temporarily suspend enforcement actions against stockbrokers non-compliant with minimum shareholders' fund requirements until November 30, 2019. A case-by-case mechanism for granting such suspensions was also mandated.

Minimum Shareholder Fund Requirement for Stock Brokers

The Securities and Exchange Commission of Sri Lanka has issued a directive mandating all licensed stock brokers and stock dealer firms to maintain a minimum shareholder's fund requirement of Rs. 100 million or 50% of the firm's stated capital, whichever is higher. This directive aims to strengthen the financial position of these firms and uplift market standards.

SEC Directive Revises Colombo Stock Exchange Transaction Fees

The Securities and Exchange Commission of Sri Lanka has issued a directive revising share transaction fees for the Colombo Stock Exchange (CSE) and Central Depository Systems (CDS). The changes introduce a step-up fee structure and increase the threshold for the two-band fee structure, effective March 15, 2017.

SEC Directive on Minimum Capital Adequacy Requirements for Stock Brokers

The Securities and Exchange Commission of Sri Lanka has issued a directive requiring all licensed stock brokers, except those trading only in debt securities, to maintain a minimum Capital Adequacy Ratio of 1.2 and a minimum liquid capital of Rs. 35 million. This directive, effective March 1, 2017, aims to implement risk-based capital adequacy requirements.