SEC, CSE hold symposium

The Securities and Exchange Commission of Sri Lanka (SEC) with the Colombo Stock Exchange (CSE) conducted a regulatory compliance symposium, an awareness program to guide public listed companies on the recently issued SEC directives on maintenance of minimum public holding as a continuing listing requirement, code of best practices on related party transactions, and disclosure requirements for directors' dealings in shares.

With the introduction of minimum public holding rules, within the next three years companies listed on the Main Board have to comply with a minimum public holding of 20% in the hands of 750 public shareholders. If the market capitalisation of the public float is above Rs. 5 billion a minimum public holding of 10 percent in the hand of 500 public shareholders is needed. For DiriSavi Board companies, public holding requirement is only 10 percent in the hands of 200 public shareholders.

The salient features of the code including the nature and functions of the related party transactions review committee, the circumstances within which the shareholder's approval is needed for certain related party transactions, immediate and annual disclosures on related party transactions and exemptions provided within the SEC Directive were covered.

Officer-in-Charge and Deputy Director General of the SEC, Dhammika Perera said rules were introduced to minimise ambiguities in the rules on timely disclosures of directors' dealings.

The other salient feature of the rule is the inclusion of 'Chief Executive Officer' to the definition of directors' dealing in shares.