| Today | Previous | Change | |
|---|---|---|---|
| % | |||
| ASPI |
11,248.16 |
11,216.50 |
+0.28 |
| S&P SL 20 |
3,165.96 |
3,164.52 |
+0.05 |
| Market Cap (LKR bn) |
4,504 |
4,489 |
To start trading in Colombo Stock Exchange, you need to open a CDS account with us. Once you have setup your account, you can then place share trades with your investment advisor who will execute it on your behalf or you can directly place orders thorough our online trading platforms.
If you are a resident individual, you need to fill
and submit along with
Please affix the company seal (embossment) and the rubber stamp under the item No: 05 in the account opening form CDS 02 and CDS 02 (A) and please place in the LSL KYC form too.
Please note that faxes or scanned copies are not accepted.
You can download the relevant application forms by following the link or alternatively visit any of our offices and collect the necessary forms.
If you have any difficulty in getting started, please contact our Documentation Division call us on +94-11-4706757.
After submitting all necessary documents (Account Opening application), you will receive a confirmation of your newly registered CDS account number via post.
For a local company, you need to fill
and submit along with two certified copies of
Please affix the company seal (embossment) and the rubber stamp under the item No: 05 in the account opening form CDS 02 and CDS 02 (A) and please place in the LSL KYC form too.
Please note that faxes or scanned copies are not accepted.
You can download the relevant application forms by following the link or alternatively visit any of our offices and collect the necessary forms.
If you have any difficulty in getting started, please contact our Documentation Division call us on +94-11-4706757.
After submitting all necessary documents (Account Opening application), you will receive a confirmation of your newly registered CDS account number via post.
Issuance of shares by resident companies to foreign investors (non-residents) is permitted without prior approval of the Exchange Control Department. In the areas of investment, movement of funds of such transactions will be through a scheme of account titled, “Securities Investment Account” (SIA).
Permission has been granted for the issue and transfer of shares in a company up to 100% of the issued capital of such company, to approved country funds, approved regional funds, corporate bodies incorporated outside Sri Lanka and individuals resident outside Sri Lanka (inclusive of Sri Lankans resident outside Sri Lanka) subject to the certain exclusions, limitations and conditions.
The permission granted shall not apply in respect of shares of a company proposing to carry on or carrying on any of the following businesses:
Money lending other than the business of providing of credits to investors to purchase securities of a listed company by a company registered as a margin provider in terms of Section 19(A) of the Securities and Exchange Commission of Sri Lanka Act No. 36 of 1981 as amended, Pawn broking, Retail trade with a capital of less than One Million US Dollars, Coastal fishing, Provision of Security services including security management, assessment and consulting to individuals or private organizations.
(a) The permission granted shall apply in respect of shares in a company carrying on or proposing to carry on any of the following businesses only up to 40% of the issued capital of such company, or if approval has been granted by the Board of Investment of Sri Lanka for a higher percentage of foreign investment in any company, only up to such higher percentage. Production of goods where Sri Lanka’s exports are subject to internationally determined quota restrictions; Growing and primary processing of tea, rubber, coconut, cocoa, rice, sugar and spices; Mining and primary processing of non-renewable national resources; Timber based industries using local timber; Fishing (deep sea fishing); Mass communications; Education; Freight forwarding; Travel agencies; Shipping agencies.
(b) The permission granted shall apply in respect of shares of a company carrying on or proposing to carry on any of the businesses set out below only up to the percentage of the issued capital of the company for which percentage either general or special approval has been granted by the Government of Sri Lanka or any legal or administrative authority set up for the approval of foreign investment in such businesses. Air transportation; Coastal shipping; Industrial undertaking in the Second Schedule of the Industrial Promotion Act, No.46 of 1990, namely- any industry manufacturing arms, ammunitions, explosives, military vehicles and equipment aircraft and other military hardware; any industry manufacturing poisons, narcotics, alcohols, dangerous drugs and toxic, hazardous or carcinogenic materials; any industry producing currency, coins or security documents; Large scale mechanized mining of gems; Lotteries.
Securities Investment Account (SIA) can be opened with commercial bank of Sri Lanka to invest in Treasury Bills/Treasury Bonds issued by Government of Sri Lanka/Equity capital of companies incorporated in Sri Lanka /Units of Unit Trusts in Sri Lanka.
Following Investors are eligible to open SIA:
Permitted Credits to SIA
Permitted Debits to SIA
Others:
Required Documentation:
Once you receive your CDS Account Confirmation you may deposit funds to BOC Corporate Branch bearing account Number- 618 stating your Account Number in the deposit slip and fax a copy to +94-11-4706767.
To retain the sales proceeds of your share transactions in the share trading account, you need to forward us the “Hold Sales Proceeds Form”
Depending on the information available with CDS at the time of submission of the account form, dividends or cash entitlements will either be remitted to the respective bank accounts or posted to the registered address held in CDS.
And if you need to add/change your Dividend Instructions a letter requesting of such change is required.
Your entitlement will be directly credited to your securities account in CDS
Once you have setup your account, you can then place share trades with your investment advisor who will execute it on your behalf or you can directly place orders thorough our online trading platforms.
The Exchange is open for continuous trading from Monday to Friday from 10.00 a.m. to 2.30 p.m. The trading sessions are as follows:
| Market Phase | Time | Days |
|---|---|---|
| Pre-Open | 9.30am | Monday – Friday (excluding Bank Holidays) |
| Open Auction Call | 10.00am | Monday – Friday (excluding Bank Holidays) |
| Regular Trading | 10.00am - 01.00pm | Monday – Friday (excluding Bank Holidays) |
| Market Close | 01.00pm |
Pre-open session
During Pre-open session (9.30 am to 10.00 am) the system accepts orders. These orders can be amended and cancelled during this session. However, no trades take place during this stage. Orders during this period are held in the ATS and will be forwarded to the engine at Open Auction session at 10.00am and the system will starts matching orders according to the algorithm. It establishes the opening price and determines the orders to be executed according to the rules for the open auction call session.
Regular Trading
During regular trading (10.00 am to 1.00 pm) new orders are continually matched to existing orders in the order book. If an order cannot be executed, it is stored in the order book.
Market Close
Market closes at 1.00 pm.
Market Halt
In the event the S&P SL20 Index (or the index that may replace the S&P SL20 in the future) drops by 5% within the day from the previous market day’s close, a “Market Halt” will be imposed on all equity securities for a period of 30 minutes. In case if the above scenario takes place at 12.30pm or later, the market will be halted and closed at at 1.00pm. This is effective from 2nd January 2009. (New Trading hours are effective from 1st November 2022). Market wide index based circuit breakers are imposed by stock exchanges to halt trading of equity securities in order to provide a "cooling off" period when there is an unusual movement in the index. Broker Firms may cancel any pending orders during the "Market Halt". However Broker Firms cannot enter new orders or amend pending orders during the "Market Halt".
Transaction cost applicable for equity & debt securities given below:
Equity - with effect from 27th June 2017
Transactions up to Rs. 100 Million - 1.12%
Divided as follows:
| Brokerage Fees | 0.640% |
| CSE Fees | 0.084% |
| CDS Fees | 0.024% |
| SEC Cess | 0.072% |
| Share transaction levy | 0.300% |
Transactions over Rs. 100 Million
| Minimum brokerage (floor) | 0.200% |
| CSE Fees | 0.0525% |
| CDS Fees | 0.0150% |
| SEC Cess | 0.0450% |
| Share transaction levy | 0.300% |
Colombo has a fair reputation internationally as a well-regulated market. Investor protection operates on two tiers. Investors can lodge a complaint if they believe that they have been unfairly treated. The complaint should in the first instance be made to the Compliance Officer of the Member Firm. If the investor is dissatisfied with the decision of the member firm, the investor can refer the complaint to the Exchange and as a third recourse, he/she can refer the complaint to the Securities and Exchange Commission.
The CSE and the Securities and Exchange Commission both have surveillance divisions that track market movement to identify evidence of insider trading, front running, churning, etc. Inquiries are conducted and, if necessary, the offenders can be charged under the Securities and Exchange Commission Act. The market surveillance system with a database of trading records maintains details of transactions and enables investigations into market manipulations.
A settlement guarantee fund and a compensation fund are in place. Additionally stockbrokers also provide a cash deposit and a bank guarantee to the CSE to be used in the event of a settlement failure. In addition to this the brokers are also required to be sufficiently liquid and to maintain minimum levels of net capital to minimize settlement failure.
remember, Investment means that your capital is at risk and the value of investments can fall as well as rise and you may get back less than you initially invested. Past performance is no guide to future performance.
