Colombo bourse shortens settlement cycle for equity trades

Business

The Colombo Stock Exchange (CSE), in consultation with the Securities and Exchange Commission of Sri Lanka (SEC) and industry participants, has announced that the settlement cycle for equity transactions will be reduced from T+3 to T+2 with effect from June 10, 2024 (i.e. trades taking place on and after June 10).

The concept of settlement cycles plays a pivotal role in ensuring smooth and efficient trading processes in the stock market, as it determines when the securities and funds are exchanged between buyers and sellers after a trade takes place, the CSE said in an announcement.

Under the T+3 cycle, fund settlement and security transfer occur on the third market day from the trade date. Transitioning to a T+2 cycle ensures that the securities and funds in relation to all equity transactions will be exchanged between the ultimate buyers and sellers on the second market day from the trade execution date.

Reducing the settlement cycle will create greater efficiencies in the market, including reduction of operational risks, liquidity needs, margin and collateral requirements. The shift would also create opportunities for the growth of investors, as quicker settlements will provide them with faster access to funds, enabling investors to reinvest their funds more efficiently, which will, in turn, enhance market liquidity. This initiative also helps the CSE align with international standards and best practices.

Comments

Still No Comments Posted.

Leave Comments

Most Reviews

June 2, 2025

- 474 - 0

National Tax week launched

The Inland Revenue Department (IRD) backed by the Excise and Customs Department today launched a fresh drive to collect taxes including some Rs.780 billion listed as ‘collectable defaults’.

June 2, 2025

- 377 - 0

SriLankan Airlines’ new A330 Fleet to perform low fly past over Colombo on Wed.

June 3, 2025

- 218 - 0

Krishanthi Kumaraswami convicts FR dismissed by SC

The Supreme Court today unanimously dismissed a Fundamental Rights petition filed by five convicts in the 1996 Krishanthi Kumaraswamy abduction, rape, and murder case.

June 6, 2025

- 216 - 0

SriLankan flight grounded in Indonesia

A SriLankan airlines flight has been grounded in an airport in Indonesia due to a technical defect leaving 93 passengers stranded, an official said.

June 5, 2025

- 177 - 0

Alert Moratuwa resident averts railway derailment

The actions of a resident in Egoda Uyana, Moratuwa helped to avoid a possible railway accident involving an office train on the southern coastal line today, the Railway Department said.

June 5, 2025

- 176 - 0

Former Sri Lanka spinner Sachithra Senanayake indicted

Former international spinner Sachithra Senanayake is set to become the first Sri Lankan cricketer indicted under the country’s Prevention of Offences Relating to Sports Act (Act No. 24 of 2019).