SEC, CSE hold symposium

Dr Nalaka Godahewa |
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.
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