Ravi LADDUWAHETTY
New Colombo Stock Exchange Chairman Krishan Balendra said his top priority will be to protect investors through a two- pronged method. He said that the Exchange would expeditiously implement the Central Counter Party system and the Delivery Versus Payment system, while encouraging more companies to list on the CSE. The Central Counter Party system was to ensure the protection of investors in the event of a trade default when the purchasing party does not pay and a pool of funds will be created towards that, Balendra told Daily News Business yesterday.
He said the idea has been accepted in principle but the mechanics had to be worked out.
The next priority would be to implement the Delivery Versus Payment System which means that the shares will be transferred to the seller only at the time the payment is made in sharp contrast to the present system where the shares are transferred immediately to the buyer and payment made after three working days, he said. There are a number of new initiatives which have been started and they would be implemented, he said.
One of the main objectives of the CSE will be to induce more corporates to list, aimed at increasing liquidity and turnover levels. However, no specific destinations have been decided to have international road shows.
He also said that the CSE would work in close collaboration with the Securities and Exchange Commission, the brokers and other stakeholders to develop capital markets.
Asked about his personal sentiments on being the youngest CSE Chairman at 38 he said : “I have the relevant experience in the capital markets industry and I look forward to the challenge. There is a lot to be done”.
source - www.dailynews.lk
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