Thursday, December 16, 2010

IPOs in electronic form

NEWS ALERT: All 2011 IPOs will be electronic, if u got share CERTIFICATES, need to lodge them

1. All IPOs from Jan 2011 will be in electronic form and no share certificates to be issued.
2. All those holding paper share certificates of currently listed Co's will have to deposit them @ CDS before END 2011.-

The Securities and Exchange Commission of Sri Lanka (SEC) has directed the Colombo Stock Exchange (CSE) and Central Depository Systems (Pvt) Ltd (CDS) to mandate the lodging of securities certificates pertaining to all listed securities at the CDS and thereby implement a system of full dematerialisation of all listed securities at the CDS.

The term full dematerialisation refers to the process of converting physical securities certificates of listed securities to a scripless (paperless) or electronic form by way of lodging the respective physical securities certificates into the respective CDS accounts of shareholders.
At present around 60% of shares are lodged in the CDS and the balance remain in certificate form.
The SEC has directed the CSE/CDS to implement the above process in the following manner.
To mandate securities of new listings to be in dematerialised form (electronic) form with effective from 1 January 2011
All applicants for IPO’s which open for subscription on or after 1.1.2011 must therefore open a CDS account and indicate their respective CDS account numbers in the IPO application form. The Company Secretary/Registrar would not issue securities certificates to the applicants who do not have valid CDS accounts.
To mandate securities of all existing listed companies which have obtained a listed status before 1 January 2011 to be in dematerialised form within a transitional period of one year from 1 January 2011.

No comments:

Post a Comment