CSE discussing with firms flouting minimum float to delist
The Colombo Stock Exchange (CSE) has initiated discussions with companies with low public float to engage them to be in line with the market operator’s rules.
“We are discussing with them to either increase their public float or to delist from the CSE boards,” a CSE official told the Business Times on Tuesday.
He said that most of them will be divesting but the number of companies is yet to be finalised. “As all the companies are listed, they need to go back to the shareholders and make a decision. This involves certain processes. Nevertheless, the rules will be implemented,” he added.
Currently whichever company is non-compliant with the minimum public float rules is automatically transferred to CSE’s second board.
The decision to engage those with low public float listed on the exchange comes on the back of the CSE introducing a change to the calculation methodology of the All Share Price Index (ASPI) allowing the ASPI to reflect the price movements of the overall stock market more accurately with shares that are freely traded or popularly called the illiquid shares.
The CSE official said that a review in enforcement rules pertaining to the securities of listed companies transferred to the second board due to flouting minimum public holding requirement is also under discussion. “This is done to discourage such companies from remaining on the Second Board for excessive periods. The CSE is looking at what can be done to encourage these companies to remove themselves from the second board and to be compliant.”
Hitad.lk has you covered with quality used or brand new cars for sale that are budget friendly yet reliable! Now is the time to sell your old ride for something more attractive to today's modern automotive market demands. Browse through our selection of affordable options now on Hitad.lk before deciding on what will work best for you!