CSE to launch US dollar denominated board this quarter
View(s):Foreign firms will be able to trade on the Colombo Stock Exchange (CSE) soon. The CSE has plans to launch a separate board for dollar denominated securities this quarter where foreigners can trade and the rules pertaining to this are being formulated , oficials said. ”We obtained exchange control approval to list foreign companies in the CSE and now we’re awaiting the Securities and Exchange Commission’s (SEC) nod,” an official told the Business Times. He said rules will be drafted and they will canvass for foreign firms to trade. “It’s restricted to foreigners and we’ll provide infrastructure for foreign fund managers,” he said, adding that some large Maldivian hoteliers are interested.
He added that CSE has entered into a Memorandum of Understanding (MoU) with the Maldives Stock Exchange to introduce dollar denominated securities and a CSE team trained their Maldivian counterparts last month on (Maldivian firms) going public on CSE along with different aspects on clearing, trading and settlement, he said. “The MoU facilitated this.” Analysts say that encouragement to list US Dollar denominated securities of foreign firms will help Sri Lankan Capital Market achieve hub status in the region. According to the CSE officials, the CSE is also extending its reach beyond borders to cooperate commercially with its peer exchanges in the region and similar efforts in roping in firms such as in the Maldives will be explored in countries like Bangladesh and Bhutan