CSE to list over 50 new firms in 2011

by Sapumali GALAGODA

Over 50 new companies will be listed in the Colombo Stock Exchange (CSE) this year and of which 50 percent will be finance companies.

Chairperson of Securities and Exchange Commission (SEC) Indrani Sugathadasa said that " Per capita will be doubled in 2011 while Rs. 500 billion will be raised from the market this year. It is expected that the market will grow by 20% per-annum.

The chairperson said that the political stability of the country provides immense confidence to local and foreign investors, explaining the capital market development plans for 2011-2013 at the Hilton, Colombo.

The CSE is the second best performing stockmarket in the world recording a growth of 123 percent in 2009 and 102 percent in 2010 while there was a 300 percent growth in the annual turnover last year.

The SEC has planned to achieve five key strategic goals in the next three years which includes facilitating improvements in the capital market infrastructure, liquidity and introducing new products to the capital market, encouraging and facilitating the Issuer Base, and investor base and improving SEC's performance through effective alignment of human, information and financial capital.

The SEC plans to facilitate improvements in the capital market infrastructure by amending rules, regulations and guidelines relating to stakeholders of the capital market and also introducing new technology to the capital market such as an e-Filling system for stockbrokers.

Improving the liquidity and introducing new products in the capital market by minimum public float requirements, following up the corporate bond market development and developing a three-year plan for reducing transaction costs. Issuer base will be widened and broadened by introducing cross border listing rules and by conducting an IPO forum for potential listees.The SEC plans to widen and broaden the investor base by promoting the unit trust industry, road shows, enhance investor awareness and facilitate the opening of branches of CSE and stock brokers.