Jan 09, Colombo: The Colombo Stock Exchange (CSE) has amended the Listing Rules to facilitate the listing of shares by foreign companies on the Multi Currency Board (MCB) of the CSE, under the Alternate Market Segment.
In this regard, the CSE has also amended the ATS Rules and the CDS Rules to facilitate the MCB.
As per the amended Listing Rules, which are set under Section 10 of the CSE Listing Rules, a foreign entity may list its shares denominated in a currency approved by the Central Bank of Sri Lanka on the MCB of the CSE. Investing and trading in such shares will be permitted only to non-resident investors who operate through a Custodian Bank of the CDS.
A ‘foreign entity referred to herein means: A body corporate duly incorporated or established outside Sri Lanka, which has its shares listed on a stock exchange of the country of its incorporation and seeking a secondary listing of its shares on the Multi-Currency Board of the Exchange.
Also, it should have capital equivalent to an amount of no less than US $ 10 million, converted at the exchange rate prevailing at the date of submission of the listing application. Investing and trading in shares listed on the MCB will only be permitted to non-resident investors, who operate through a custodian bank of CDS.
The amended Listing Rules relating to the MCB are set out under Section 10 of the CSE Listing Rules.