Rules for Dollar trades at CSE to be finalised
View(s):To provide an enabling environment for foreign firms to trade on the Colombo Stock Exchange (CSE), the CSE says that they are framing the rules to entertain foreign listings. “The rules committee has almost finalised the said regulations and we are hopeful that they will be approved by the Securities and Exchange Commission next month,” Rajeeva Bandaranaike, CEO, CSE told the Business Times. He said that after the rules are passed, the CSE can set up the dollar denominated board. He said that some seven Maldivian firms both listed and unlisted in (Male Exchange) are aggressively discussing with them to go public on the board for dollar denominated securities.
The CSE obtained exchange control approval to list foreign companies in the CSE in April this year. The CSE is canvassing for foreign firms to trade and the proposed new board will be restricted to foreigners. It was reported that some large Maldivian hoteliers are interested in going public on this board and also an industrial firm is discussing on this matter. The 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 recently on (Maldivian firms) going public on CSE along with different aspects on clearing, trading and settlement which the MoU facilitated.