The Colombo Stock Exchange’s (CSE) listing rules may change by next year with the CSE board putting out a discussion paper to find out whether there’s a need to do this, according to officials.
“We may look at changing the listing rules. Presently there’s a discussion paper out to explore this,” Surekha Sellahewa, CEO CSE said, responding to a query from the Business Times at the MTI IPO Forum on Thursday.
According to industry sources, the mandatory corporate governance code also needs some revision by next year. It was pointed out that out of the 86 annual reports submitted by listed firms as at December last year to the CSE, 32 annual reports had shortcomings in terms of the regulator’s listing procedures. “When adhering to the ethics and the mandatory corporate governance practices, it must be viewed as something that enhances a firm’s brand value,” Vajira Wijegunewardena, Director Securities and Exchange Commission noted, saying that this will help companies to build more credibility.
Hilmy Cader, CEO MTI Consulting observed that 0.73% or Rs 16.8 billion of market capitalisation during the last 13 months came from seven Initial Public Offerings (IPO). Hemas Power, Renuka Agri, Ceylon Tea Brokers, Raigam, Vallibal Finance, Odel, PC House have contributed this amount, and Laugfs which closed its issue on the opening day itself (on Thursday) will be the most successful IPO since the end of the war last year, according to analysts.
Since these IPOs, the market capitalisation has growth by more than 120% with the CSE seeing a 73% investor growth. |
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