SMS alerts for trading
In a few months, each investor will get their Colombo Stock Exchange (CSE) trading information as a mobile alert.
“When any activity happens in a Central Depository Account, it will be alerted to the investor through a SMS. We want to make it mandatory,” Rajeeva Bandaranaike, CEO CSE told the Business Times.
This came on the back of the Securities and Exchange Commission (SEC) making initial steps to be more resourceful by permitting crucial CSE procedures to be done electronically.
It approved amendments to the Stockbroker Rules, Central Depository Accounts (CDS) rules and public listing rules as part of the market digitalisation initiative to ensure electronic clearing and settlement at the CSE earlier this month.
Initiated by the SEC – CSE joint committee, the rules will allow the stock market to transition from a paper-based to an electronic-based environment helping investors to open CDS accounts, start trading and make settlements online eliminating visits to stockbrokers. So should another curfew be imposed, it can function smoothly. Most things will be communicated through email.
The CSE will call for their emails and account details by next month. All accounts opened after 2017 have been done so with details of bank accounts, mobile numbers and email addresses, Mr. Bandaranaike said noting details of the remaining accounts will be collected. “Within a months’ time we hope to get everything electronically activated.”
The rule amendments will aid the listed companies to send annual reports to their shareholders by email as well and dividends payments through electronic bank transfers.
Investors are encouraged to make available their email addresses, bank account numbers and mobile numbers in the prescribed format to their stock brokers in order to continue to receive the relevant statements in an uninterrupted manner, a SEC media release issued last Tuesday said.
Presently Internet-based trading is enabled through all stock brokers and the account creation and maintenance at the CDS and fund settlement between stock broker firms and banks are fully electronic and investors were urged to register for online trading and online banking services.