For equity and debt market:
CSE to introduce new trading system
H.D.H Senewiratne
The Colombo Stock Market (CSE) is now in the process of introducing a
new trading system, which would be trading both equity and debt market
on the same platform. This would enhance the efficiency of the market,
its sources said.
“With the introduction of one platform to trade both equity and debt
on one platform, corporate entities and individuals could trade on the
same platform without any problem and with much convenience,” CSE Head
of Marketing Niroshan Wijesundera told Daily News Business.
He said that this would also help companies to raise capital through
the debt market without going for an Initial Public Offering (IPO) or
introductory offering, which certain companies are reluctant to because
it would lose the controlling stake of the company. He also said that
CSE became the best performing capital market in the world recording a
growth of 111.14 percent. All Share Price Index (ASPI) of the CSE and
Milanka Price Index (MPI) both had crossed the 7,000 milestone creating
history.Wijesundera said that from next year onwards the CSE would
remove the MPI, which duplicates the Sri Lanka 20 (SL20) Index, which
also consist of 20 most liquid companies in the market, which
contributes 52 percent of the market.
Therefore, MPI is not reflecting the correct picture with comparison
to the SL20, he said. Once the new one platform trading system is
introduced to the market this would help all stock market traders to
trade in one platform with a lot of convenience.
The CSE has facilities for the secondary trading of corporate and
Government Securities. A separate trading system (DEX) and a separate
clearing and settlement mechanism is in place for debt securities.
Presently 69 corporate debt securities are listed on the CSE.
All Government Debt is tradable through the DEX system. Institutions
incorporated outside Sri Lanka and individual’s resident outside Sri
Lanka inclusive of Sri Lankan residents out side Sri Lanka will help to
buy and/or sell shares in a listed company in the market up to 100 % of
the issued capital of such company.
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