Tuesday, November 30, 2010

Sri Lanka shares to go electronic

Nov 30, 2010 (LBO) - Sri Lanka's markets regulator plans to make all shares of listed firms scripless by converting all paper-based physical share certificates into electronic form, the securities regulator has said.

The Securities and Exchange Commission has told the stock exchange to ensure the lodging of certificates of all listed securities in the central depository system and convert them into 'de-mat' or scripless form from January 01, 2011.

Securities of existing listing entities which got listed before January 01, 2011 will get a transitional period of a year from January 01 to be in dematerialised form.

At the moment share certificates have to be lodged in the CDS to sell, but holders can also keep paper certificates with them if they do not sell.

Listing rules are to be amended to provide for them to be re-converted to physical certificates if needed for purposes like mortgaging, the SEC said.

source - www.lbo.lk

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