CSE gets tough with more errant firms
Some 16 quoted companies are on the chopping block for flouting the Colombo Stock Exchange (CSE) regulations, officials say. Of this, trading of shares in seven firms currently on the Watch List will be suspended with effect from tomorrow April 2, the CSE announced recently, unless they comply by March 29 (last Thursday). It wasn’t clear whether they had done so by Friday. They need to abide by Rule 7.4 (c) (vii) and/or Rule 7.5 (d) (7) of the CSE Listing Rules. Some nine firms are in line to face the same treatment, officials told the Business Times.
Lanka Cement PLC, PC House PLC, PC Pharma PLC, Ceylon & Foreign Trades PLC, Standard Capital PLC, Adam Investments PLC and Adam Capital PLC are the firms which flouted sending interim financial statements for certain quarters. Once companies are on the Watch List, they now issue market disclosures on what they intend doing about becoming compliant. These firms were saying they’ll comply, but they hadn’t, which prompted CSE’s action. This came about after the Watch List provided them with real powers compared to weak rules earlier to which listed companies had a ‘don’t care’ attitude.
Lanka Cement PLC is a state owned entity which has been especially bad since September 2014 without submitting any financial reports. Two others – PC House PLC and PC Pharma PLC haven’t sent interim financial statements for the quarters ended 31st December 2015 to 31st December 2017 and the annual reports for the year ended 31st March 2014 to 31st March 2017. The balance firms that were named by the CSE hadn’t sent their interim finance statements for the quarters ended 30th September 2017 and 31st December 2017 and the annual reports for the year ended 31st March 2017.