CSE discussing with firms to efficiently subscribe to Rights
View(s):The Colombo Stock Exchange (CSE) is discussing with publicly listed firms to directly upload the rights allotments to shareholders’ Central Depository Systems (CDS) accounts.
This is done in a bid to allow investors to trade on rights for a longer period and to make the process more efficient.
Currently the rights allotment letters are posted to the shareholders and upon receipt they need to deposit them into the CDS accounts if they intend to trade on these rights. “By directly uploading the rights allotment into the CDS accounts, the shareholders are given a longer time to trade and it is a more efficient way to assist the shareholders,“ Rajeeva Bandaranaike, CEO CSE told the Business Times.
Both parties are trying to overcome the legal issues of depositing the allotment document directly into the CDS accounts. “The rights allotment document is a legal one, we are trying to see how best we can go about it,” Mr. Bandaranaike said.
(DEC)