SEC wants more finance companies listed in CSE

Charumini de Silva

The Securities and Exchange Commission (SEC) is targeting ten registered finance companies to be listed in the Colombo Stock Exchange (CSE) after the Central Bank of Sri Lanka (CBSL) announced a time period for these finance companies to get listed in the CSE.

The Governor of the CBSL Ajith N. Cabraal has recently announced that they have given a time period of two years for registered finance companies to get listed in the Colombo Stock Exchange (CSE).

The Director General, the Securities and Exchange Commission (SEC), Channa de Silva said, “There are 34 registered finance companies, but only seven companies are listed in the Colombo Stock Exchange (CSE). The SCE expects ten registered finance companies to be listed in the first year”.

“The CSE will provide a platform for companies that underwent mergers who are keen on getting listed. Being listed in the CSE will benefit the companies by having a substantial finance. This will also benefit the depositors since it will be an important parameter for them as well, while companies that get listed in the CSE will raise new avenues to enhance capital too”, he said.

“There will be improvements in a company’s governance, management, economic rational and it will build the image of the company too. For financial companies it is an access to raise capital in the arena of the stock market”, de Silva said.

“The CBSL considers that the companies who obtain public funds should have more transparency and when the companies get listed in the CSE it will add more transparency to their business.

Listed companies will also improve the good governance as well. The CBSL is further keen on fine systems and transparency as much as possible, to safeguard the public”, an official of the CBSL said.

“The CSE will like to get more companies listed. Also it will help the financial industry to raise more capital and to help the industry to grow.

The companies have the opportunity to expand their operations and they will have more transparency, market discipline, public awareness and exposure as well”, the official said.