BOI Board on the stock exchange to be set up by mid September
The Board of Investment (BOI) has signed Memorandum of Understandings (MoU) with six companies vying to set up a range of projects mainly for mixed development and the investment promotion agency’s target to form the new board on the Colombo Stock Exchange (CSE) is that much closer, Lakshman Jayaweera, Chairman BOI says.
“By mid next month we will be launching a separate board called the BOI Board in addition to the existing Main Board and the Diri Savi Board to facilitate this process,” he told the Business Times. Projects ranging from solar power, hotels and aluminum can manufacturing were signed, he said, adding that most projects were in mixed development. “We need volumes to start on this board, so we aim to sign a few more MoUs soon.”
The new board aims to allow BOI companies to list on a separate board without having to wait three years to list on the CSE’s main board as is required now. Firms with a BOI status and a capital of US$10 million are allowed on this board, according to the draft rules.
Dr. Jayaweera said 50 per cent of their capital should be held by the main promoters/owners for a minimum of two years. “But they are allowed to sell it to a foreign party (not a local party) before the two years.” Trading on these shares is limited only to banks, finance companies, High Networth Individuals (those with $100,000 initial investments).