Master plan to ensure seamless function of CSE | Daily News

Master plan to ensure seamless function of CSE

 Viraj Dayaratne
Viraj Dayaratne

The Securities and Exchange Commission (SEC) has appointed a joint committee to find solutions to maintain the continuous operation of the Colombo Stock Exchange (CSE) amid the COVID -19 threats, SEC Chairman Viraj Dayaratne PC said.

“We need to have an end- to- end digitized market in that respect and I have appointed a joint committee comprising members of the SEC and CSE on April 30 and by May 20 they would come out with a master plan to ensure we don’t face a situation like this and the market will be ready to operate digitally.”

Dayaratne commenting on the closer of the CSE said rather than closer of the market it was the inability for the market to open under unprecedented conditions where a curfew was imposed by with strict conditions unlike most other jurisdictions where they practiced a lockdown.

The Chairman said that what the SEC had to consider was whether the market could function under those circumstances.

He said they did not take a decision on their own and had a continuous dialog with the CSE and they explored the possibility of having the market open.

“We not only discussed the issue with the CSE but also with other stakeholders. What we had to consider was whether it was possible to open the market.”

He said what as far as the regulator, the SEC was concerned whether they could have a fair and an orderly market and not just a market where a particular segment could trade.

“Although we have an automated trading system and online facilities are available for trading, the end- to- end transactions of the market had to be digitized. So we didn’t have that capability so we in fact went into the matter very closely.

We spoke to the CSE and wanted them to demonstrate the entities that had to be operational, the stakeholders who had to perform their functions and we also looked at the issues they would have faced during the curfew period, whether it was possible for them to perform their functions and the challenges, way out and the solutions. In this exercise it was not just a cursory glance at the activities.”

Responding to the affects of keeping the market closed he said as the regulator they would have preferred to keep the market opened.

The issue was whether they had the infrastructure facilities for the market to perform. Hence he said the issue was not to close the market but the inability for the market to function. Dayaratne said considering what happen in the past five days the outlook for the capital market was positive.

He said as a regulator they had to ensure that they had a mechanism in place to safeguard the interest of all stakeholders and investors as well. So the circuit breaker mechanism has proved to be a success.


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