Finance companies keen to go for listing

To add more transparency, market discipline:

Charumini de Silva

There is tremendous response from registered finance companies with the Securities and Exchange Commission’s (SECs) target of registered finance companies to be listed in the Colombo Stock Exchange (CSE). The Central Bank announced a time period for these finance companies to get listed in the CSE, Central Bank Deputy Governor, K.G.D.D. Dheerasinghe told Daily News Business.

The Colombo Stock Exchange

He said that being listed in the CSE will benefit companies by having a sustainable finance.

“This will also benefit depositors since it will be an important parameter for them, while companies that get listed in the CSE will raise new avenues to enhance capital too.”

“During the global economic downturn and drawbacks some banks were facing difficulties. Actions taken by the Central Bank and the Government to overcome these difficulties was outstanding. Seylan Bank went for an Initial Public Offering (IPO) and it was oversubscribed by several times. At present, this bank has performed well,” Dheerasinghe said.

“Similarly registered financial companies being listed in the CSE will add more transparency to their business,” he said.

The Deputy Governor said listing in the CSE will provide finance companies to have a strong balance sheet and will also help the financial industry to raise more capital and to help develop the industry.

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

There are over 30 registered finance companies and of that only over five companies have been listed in the CSE.

“The Central Bank is further keen on maintaining financial systems and transparency as much as possible to safeguard the public,” he said.