CSE -SEC to hold awareness forums on SME board with chambers
The Colombo Stock Exchange (CSE) and Securities and Exchange Commission (SEC) plan to hold awareness forums across the country on their brand new listing platform launched last week to develop the Small and Medium Enterprises (SME).
“A series of awareness workshops jointly with different clusters like the Ceylon Chamber of Commerce, the national chambers including regional chambers will be held to make SME and retailers aware of equity finance available to smaller companies on the SME board,” Rajeeva Bandaranaike CEO CSE told the Business Times.
Empower, as the new board is called was fast-tracked by a series of special initiatives, Ranel Wijesinha, Chairman SEC told the Business Times.
“This national imperative is to usher in an economically strong, politically stable, socially responsive, Sri Lanka,” he said noting that the SEC has identified four clusters who can assist them to broad base Empower – the accounting professionals, the chambers, the Bank of Ceylon (BoC) and People’s Bank (PB) and the donor agencies.
In terms of the accounting professionals, he said that there will be a role for a sponsor registered with the CSE – it can be an investment bank, a commercial bank, a chartered accountant or any retired banker, groups of people such as single practitioners or firms who can play the role of a sponsor who will evaluate the eligibility of an enterprise to be listed. “Also we will work with the chambers. The BoC and the PB which have more than 1, 200 branches can mobilise their existing borrowers to be potential candidates for the SME board,” Mr. Wijesinha added noting that they will call upon the World Bank, the Asian Development Bank and the JICA to assist them in popularising this board.
Empower is aimed at companies which have at least Rs. 25 million in capital, are at least two years old and have clean audit reports.
“The SME Board of the Colombo Stock Exchange can play a crucial role in enabling such young companies to take their first steps into capital markets and raise equity funding to grow to the next level,” Finance Minister Mangala Samaraweera said at the launch.
Chairman of the CSE Ray Abeywardena said at the launch that the listing will not only provide access to capital but also improve governance of smaller firms helping them grow faster.
“Apart from access to capital, the new listing platform will offer SME opportunities to build credibility through disclosure of information and balanced governance standards, which would enhance their visibility and attract strategic investors,” he said.