SEC to develop stock market through research
Ten year development plan to focus on new vistas
STOCK MARKET: The Securities and Exchange Commission of Sri
Lanka (SEC) is to work on a series of research projects for the
development of the stock market.
Speaking at a programme organized for listed companies to highlight
the features of the new corporate
CB Governor Ajith Nivard Cabraal
governance rules Director General of SEC Channa de Silva said
SEC is working in a new era in the capital market under their ten year
development plan. The Commission expects to conduct a series of research
to develop the stock market as part of the SEC development plan, he
Meanwhile, the SEC also expects to work together with a Malaysian
partner. â€˜We have signed an agreement with this Malaysian partner and
they will be in Sri Lanka soon to work with us,â€™ de Silva said.
Plans have also been made to organise capital market programmes in
their financial academy and promote investments in the stock market
specially among the senior citizens.
Pursuant to a joint initiative by the SEC, the Institute of Chartered
Accountants of Sri Lanka and the Colombo Stock Exchange (CSE) have
formulated rules on corporate governance, to be incorporated in the
Listing Rules of the CSE to enforce mandatory compliance from April 1,
â€˜Corporate Governance will be the key criterion in winning confidence
of the people,â€™ he said.
These rules aim at ensuring accountability and transparency in the
conduct of the affairs of listed companies enhancing investor
confidence, a prerequisite of a sound stock market.
Chairman CSE Nihal Fonseka
Governor of the Central Bank Ajith Nivard Cabraal said companies need
to be prepared for the adoption of the new rules of Corporate Governance
for the development of the capital market.
Chairman of the CSE Nihal Fonseka said new rules focused on the
independence of company directors and the basic committee structure.
Companies have ample time to prepare for the new rules by 2008.
In implementing Rules on the Corporate Governance it will be
mandatory for listed companies to publish a table in the annual report
relating to the financial year commencing on or after April 1, 2007
confirming that as at the date of the annual report they comply with the
Corporate Governance rules and if not, explain why the company has not
complied with identified rules.
It shall be mandatory for listed companies to comply with the
Corporate Governance rules with effect from the financial year
commencing on or after April 1, 2008 and the annual report must contain
the relevant affirmative statements.