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.
A Sri Lanka Air Force Bell 212 helicopter belonging to the No. 72 squadron has crashed into the Madhuru Oya reservoir this morning, Air FOrce Media Spokesman Eranda Geeganage said.
Update: Five of the twelve passengers on board the bell 212 aircraft that crashed into the Maduru Oya today, have succumbed to their injuries, the SLAF said.
Leave Comments