CSE to list close ended funds

The Colombo Stock Exchange (CSE) is meeting relevant stakeholders next Friday in a move that will see close ended funds being listed, according to a top CSE official.

“We have almost finalised the procedures and the amendments relating to the laws pertaining to listing close ended funds. We sent the drafts to all stakeholders such as listed companies, the Securities and Exchange Commission, company secretaries, legal firms and investment bankers. We are meeting them to discuss the matter further on May 23,” Surekha Sellahewa, CEO CSE told The Sunday Times FT. The first of its kind to get listed is likely to be NAMAL Amãna Equity Fund which was launched last year by National Asset Management Ltd (NAMAL) together with Amãna Capital – A subsidiary of Amãna investments Limited.

A fund manager said that currently close ended funds do not provide an exit mechanism for the investor. “This is why it is important for them to be listed, because listing enables an exit mechanism,” he added. A ‘close-ended fund,’ is one of three basic types of investment companies. The two other basic types of investment companies are mutual funds and unit investments trusts.