Phase 2 of CSE digitalisation mapped
The Securities and Exchange Commission (SEC) has prepared the blueprint for the second phase of the three-stage digitalisation of the Colombo Stock Exchange (CSE).
SEC Chairman Viraj Dayaratne told the Business Times that this will go online by December.
The first phase of the SEC/CSE digital strategy themed ‘Hyper-Leap to the future’ to digitalise all stakeholder touch points enabling end-to-end connectivity electronically was launched on September 17. With this, the CSE eliminated all paper and enabled digital account opening, unflawed post-trade and settlement and implementing e-contract notes and e-statements. The Commission approved the required amendments to the Stockbroker Rules, Central Depository Rules (CDS) and Listing Rules recently to be in line with the digitalisation.
Phase 2 will allow CDS account holders to transfer funds to third parties. “This means that beneficial ownership transfer of funds will be brought in,” Mr. Dayaratne said. It is possible to do so now that the digital signature is accepted, he added. The SEC is considering making digital payments mandatory with the second phase.
The account holders will be able to send instructions for trading suspensions/dealing suspensions to their stockbrokers through the mobile app. The second phase will have mobile app compatibility with other devices such as the laptop. Account holder detail changes and title changes would also be facilitated online.
The account holders will be able to send instructions for trading suspensions/dealing suspensions to their stockbrokers through the mobile app.
Mr. Dayaratne said the SEC with the CSE is working on including smart wallets into the second phase of CSE digitalisation. “This will need new software.”
As at end September the CSE saw a significant increase of over 63 per cent in CDS which the SEC attributed to the CSE’s digitalisation of the end-to-end operations.
Mr. Dayaratne noted that the third phase of digitalisation will be done by April next year. A salient feature of this phase would be executing Initial Public Offerings (IPO) online. “We may need to work with Lanka Clear Ltd on this,” Mr. Dayaratne added.