Benefits of investing in Share Market highlighted

By investing in the Share Market there would be opportunities to raise capital to fund new projects, undertake expansion, diversification and for acquisitions said Director General, Colombo Stock Exchange (CSE) Surekha Sellahewa.

She was speaking at a seminar on the benefits of investing in the Share Market organized by the Federation of Chambers of Commerce and Industry of Sri Lanka (FCCISL) in association with the Securities and Exchange Commission of Sri Lanka at the BMICH.

More than 100 entrepreneurs said that through the issue of debentures, rights and private placements further capital could be raised.

She said that the successes on the Bourse are many and some of them are: Capital Reach Leasing Rs. 60.12 million in 2009; Janashakthi Insurance Rs. 396 Million in 2008; Dialog Telecom Rs. 8.55 Billion in 2005; Lanka IOC Rs. 3.58 Billion in 2004; Hemas Holdings Rs. 600 million in 2003 and Sri Lanka Telecom Rs. 3.25 Billion in 2003. Ms. Sellahewa said that the listing methods are; offer for subscription; offer for sale and introduction.

Offering for subscription is an invitation to the public to subscribe for new Securities to be issued by the company; offering for sale in an invitation to the public to subscribe for securities already in issue and the Introduction is the direct listing of securities on the CSE without the need of an Initial Public Offering.

The listing criteria are Equity and Debentures with the Main Board and Second/Diri Savi Board. She said that the listing could be through the Annual Report where the Annual Report must be circulated among shareholders and to the CSE, before the expiry of six months.

In the case of Interim Financial Statements: Main Board - first three quarters with two months for the end quarter and second / Diri Savi Board, prepared on a half-yearly basis and sent with two months from the end of the half year.