Sri Lankan shares rose to a two-month high

S.Lanka stocks at 2-month high as Keells rise, The All-Share Price Index .CSE of the Colombo Stock Exchange closed 12.49 points firmer at 3,089.45, its highest close since Oct. 16.

Top conglomerate John Keells Holdings closed 0.63 percent to a new over two-year high of 160.25 rupees a share.

"A new U.S. based fund bought Keells shares and the sellers were institutional," an analyst said on condition of anonymity.

Keells accounted for over 88 percent of the day's turnover of 5.3 billion rupees ($46.2 million), its highest since July 28, last year. The daily average in 2008 was 464 million rupees. Net foreign buying hit 2.36 billion rupees, mainly from Keells trade.

Analysts said the foreign buying in the past few days has improved investor confidence, which had been declining since the government announced an early national election next year.

Sri Lanka's presidential election is scheduled for Jan. 26 and it will be followed by parliamentary election due by April.

Sri Lanka's stocks closed 1.65 percent lower Nov 05, 2009

Sri Lanka's stock index .CSE fell 1.65 percent to its lowest close in nearly 2 months on Thursday, as economic woes and trade union protests ahead of national polls rattled investor confidence. The benchmark Colombo All Share Index closed down 47.88 points lower at 2,954 and the Milanka Index of liquid stocks fell 1.06 percent (34.33 points) to 3,207.7 points according to the provisional Colombo Stock Exchange data.

The bourse has fallen 8.83 percent after the government said on Oct. 13 it will hold national polls by April.

Frequent protests and trade union actions have dampened investor confidence, which had been already on the decline on worries of political uncertainty ahead of national polls.

Investors are also wary of a likely loss of an EU trade concession.

A correction in the index was expected after the market doubled so far this year and became the second best performing market in the world with the benchmark index topping 3,000 points to an all time high.

Sri Lanka's economy was hit by excessive government spending, triggered high inflation, and high interest rates in the midst of a global downturn.

Diversified John Keells Holdings closed down 4.00 rupees at 4.00. Aitken Spence Hotel Holding close flat at 215.00 rupees, Commercial Bank of Ceylon closed at 167.50 up 50 cents.

Commercial Bank appointed a Settlement Bank of CSE's Central Depository System

The Commercial Bank of Ceylon has been appointed a Settlement Bank of the Central Depository System (CDS) of the Colombo Stock Exchange (CSE) following the latter's move towards a multiple bank settlement system.

Consequently, stockbrokers accredited with the CSE will have the option of using the services of Sri Lanka's benchmark private bank for settlements relating to securities traded on the Colombo Stock Exchange.

Welcoming Commercial Bank as the first new bank in the multiple bank settlement system, Mr. Nihal Fonseka, Chairman of the CSE said: "Offering brokers a choice of banks for settlement of transactions is an international best practice that will be welcomed by all those who trade in securities. This is therefore an important milestone in the evolution of the CDS settlement system."

Commercial Bank Managing Director Amitha Gooneratne said: "The Commercial Bank is very pleased to be selected as a service provider to the Central Depository System of the Stock Exchange. Colombo has one of the most dynamic bourses in the region, and we look forward to providing our services to brokers."

A fully owned subsidiary of the Colombo Stock Exchange, the Central Depository System (Pvt) Ltd., acts as the depository for all securities traded on the Exchange and is responsible for the post trade settlement of transactions. It holds securities in trust for holders of securities of quoted companies pending transactions via the Automated Trading System (ATS) and Debt Securities Trading System (DEX) of the CSE.

As a Settlement Bank, Commercial Bank will be responsible for the accepting or transfer of funds relating to trades between the accounts of participants of the CDS.

Settlements under the new multiple bank settlement system will initially take place between Commercial Bank and Sampath Bank, which has been the settlement bank of the CDS for many years.

Settlements through Commercial Bank are scheduled to begin for transactions taking place on 26 October 2009 which are executed by stock brokers who use Commercial Bank as their settlement Bank.

The CSE was one of the first Exchanges in the region to successfully automate its clearing and settlement functions in 1991, with the installation of a Central Depository and an Automated Trading System (ATS) in 1997. This has notably enhanced the transparency and efficiency of the securities market in Sri Lanka.

A total of 232 companies are currently listed on the CSE, representing 20 business sectors with a market capitalization of Rs. 969.6.billion as at 21 October 2009.

CSE gained in thin trade as lending rate cut by state banks

Source- ReutersIndia(By Shihar Aneez)

Sri Lanka's stock market .CSE gained in thin trade on Wednesday, as a lending rate cut by state banks offset concerns of a U.S. insider trading case and a threat to a EU trade concession, dealers said.

The All-Share Price Index of the Colombo Stock Exchange rose 1.02 percent or 30.78 points, but closed 0.3 percent firmer at 3005.72 in thin volume of 318.2 million rupees ($2.77 million). Last year's daily average turnover was 464 million rupees.

Sri Lanka's president on Tuesday ordered state banks to slash lending rates by almost half, after repeated cuts by the central bank failed to bring down the lending rates. [ID:nCOL190249] In line with the rate cut, the benchmark 91-day treasury bill yield fell 60 basis points to an over five-year low of 8.50 percent on Wednesday [ID:nCOL486920].

But, investors continued to stay cautious. The arrest of Sri Lankan-born Raj Rajaratnam, founder of the Galleon Group hedge fund, in New York on Oct. 16, fuelled a 5 percent drop in the first two days of trading last week, given he or Galleon hold large stakes in several blue chip firms.

Also worrying investors is an EU probe that last week found Sri Lanka in breach of human rights laws, which threatens a trade concession from the EU, but the central bank on Wednesday said the move will not hurt exports.

The EU on Tuesday urged Sri Lanka to end impunity over human rights violations and help war displaced people.

Market heavyweight John Keells Holdings JKH.CM rose 1.59 percent to 144 rupees a share.

But, with a 100 percent return so far this year, the CSE is still one of the best performing bourses in Asia.

Buy stocks/shares online via internet

Famous quetion i have been asked several times;"How to do stock market trading on line in sri lanka.?"
The Internet/online-trading has created a huge impact on share market.We can even buy and sell stocks online and traders love having the ability to look at their accounts whenever they want to.
In fact, brokers simply love to do transactions online, without ever having to use the telephone again. Online trading is a cool way to learn about stock markets, without having to ever leaveyour front door to do it.
People can look in a web page for price changes than a projected screen at broker's office.If you aren't IT/internet savvy, this may be a dangerous pursuit for you. Get as much information as you can before you start.
Sometimes, you can find it difficult to get internet access. This means won't always have the ability to get online to carry out your trading business. This is the time when your broker can be helpful, simply call them and request them to make the trade for you. This is a simple way to solve the issue, irrespective if you are a beginner in the stock market or if you are an
advancedplayer. By researching try to find many sites provide a variety of different services e.g.
market news, price data, charts, ‘virtual’ trading accounts and more.
As a rule of thumb, choose to trade with online brokerage companies that have been around forsome time. Also who will give a demostration how to use online interface.
Your comment ar mostly welcome!

Unusual day for CSE

Today(21st-Oct,2009) market showed a unusual behavior.

From last two day market was dropped.

At the start of the day All-Price-index was around 2990.00

and around at 11.10am it drops to around 2850.00.

But then aftr market start recovering and from around 30 minitues

All-Price-index came to 3000.00 point.

see graphs...

All-Price-index;

Milanka-Price-index

The indices at the Colombo Stock Exchange rebounded strongly with the ASPI closing up 35 points (+1.2 percent) to close at 3,019. The key broader index of all shares was down close to 122 points in early morning trade but bounced back as buying came back into the large cap companies.

The more sensitive MPI index was up by 64 points (+1.9 percent to close at 3,391. Turnover for the day was Rs 951 million with John Keells Holdings contributing Rs 104 million to turnover. The diversified conglomerate’s share swung between Rs 135.50 and Rs 144.50, but closed at Rs 140.25. On Tuesday the share closed at Rs 140.00.

Seylan Bank non voting shares closed at Rs 17.25 on turnover of Rs 60 million, while Brown and Company closed at Rs 80.50 on turnover of Rs 49 million. Brown’s dropped to a day low in morning’s trade to Rs 70.50, while Seylan Bank non voting dropped to a low of Rs 15.50. The two telecom operators also witnessed much volatility with Dialog dropping to a low of Rs 6.75 and reaching a high of Rs 7.50, before finally closing at Rs 7.25. Sri Lanka Telecom closed at Rs 45.00 which was its peak price for the day after a low of Rs 41.50

Sri Lanka's stock market(CSE) lost more than 2.8 percent in this tuesday

Today(Oct 20) Sri Lanka's stock market (CSE) lost more than 2.8 percent in early trade, on weak investor confidence after a US insider trading case and economic woes over potential loss of a lucrative EU trade scheme.

The All-Share Price Index of the Colombo Stock Exchange fell 3 percent or 92.53 points to hit a three-week low of 2990.38 at 0641 GMT. It was the fifth straight fall since hitting a record high of 3157.11 points on Thursday.

"Both the potential loss of trade concession from EU and an insider trading scam are heavily weighing on investor confidence," an analyst told Reuters on condition of anonymity.

The European Union on Monday published the findings of an investigation, which has found Sri Lanka in breach of global human rights laws and EU sources said the country is likely to lose concessions worth more than $100 million for its top exports to Europe. [ID:nLJ731429]

Billionaire Galleon Group hedge fund founder Raj Rajaratnam and executives from other U.S. companies were charged on Friday with the largest hedge fund insider-trading scheme ever in the United States. [ID:nN16545101]

Rajaratnam is one of the biggest single investors on the Colombo Stock Exchange (.CSE) and has large stakes in some of Sri Lanka's blue chip shares. On Monday, shares plunged 3.8 percent, before recovering to close 1.56 percent weaker.

Market heavyweight John Keells Holdings (JKH.CM), in which Rajaratnam has an 8.6 percent stake, fell as high as 5.8 percent to 140 rupees a share. It fell 3.26 percent on Monday.

Analysts said the trend would be temporary and the market should recover after another two sessions as the prices of blue chips may fall to an attractive level.

Higher economic growth hopes, more market liquidity, a $2.6 billion IMF loan, an upgraded rating outlook and foreign inflows have overall boosted investor confidence since the end of a 25-year war against the Tamil Tiger rebels in May.

With a return of over 99 percent so far this year, the CSE is still the second-best performing bourse in the world after Peru's Lima's stock market (.IGRA).

Source - Reuters - Tuesday, October 20

Colombo Stock Exchange crash by Arrest of billionaire Raj Rajaratnam

Arrest of world’s richest Sri Lankan, billionaire Raj Rajaratnam felt in Sri Lanka with the Colombo Stock Exchange crash. The Colombo Stock Exchange (CSE) on Monday(19th,Oct 2009) witnessed the biggest fall in the last five years, following the arrest of the Sri Lanka-born New York hedge fund billionaire, Raj Rajaratnam, on charges of “vast insider trading.”

The Central Bank of Sri Lanka (CBSL), however, said the investigations into the Galleon Group hedge fund founder were inconclusive and urged observers and analysts not to jump to conclusions.

Mr. Rajaratnam is the richest Sri Lanka-born U.S. citizen and his firm has a stake in all of the 10 top listed Sri Lankan companies.

He was the icon of rich and powerful in Sri Lanka. Lankan government vowed to investigate the Wharton Business School-educated Rajaratnam’s LTTE links in a witch-hunt.

The Sri Lankan business circles were worried for the conversations about the implications of his arrest on the hundreds of millions of dollars that Rajaratnam had invested in Sri Lanka since 2003, a year after the government signed a truce with the LTTE.

With an estimated return of over 108 per cent so far in 2009, the CSE was the second best performing bourse in the world before the jolt.

Mr. Rajaratnam (52) was among six persons arrested on Friday by the U.S. authorities.

The CBSL in a statement here said, “Investigations are yet continuing in relation to the funding allegedly provided by Raj Rajaratnam to the Tamil Rehabilitation Organisation (TRO). Accordingly, any reports that suggest that such investigations are concluded or that Mr. Rajaratnam has been cleared of possible involvement are incorrect and misleading.”

A report on the Sri Lankan Presidential website has said that Mr. Rajaratnam is one of the wealthiest men in America with an estimated net worth of $1.3 billion and he was a major contributor to the campaigns of Hillary Clinton and also the single largest known U.S. contributor to a charity linked to the LTTE.

About Technologies used in Colombo Stock Exchange

The CSE operates 3 main systems.

• The Central Depository System
• Automatic Trading System
• Debt Securities Trading System

Automated Trading System of the Colombo Stock Exchange

The Colombo Stock Exchange operates a fully fault tolerant distributed architecture Trading System with event driven push technology which provides a robust platform for trading. The system consists of a collective group of programs working cohesively in a distributed environment that delivers the business functionality, which is easily maintainable. The order driven trading platform assures a transparent market and executes trades on price and time priority.

The Local Area Network has built in redundancy with dual network backbones, firewalls and Intruder Detection and Prevention systems for security adds to the robustness of the system. The wide area network also has dual links to broker firms through two independent communication service providers to ensure maximum uptime.

The Trading System commences trading with a pre-open session followed by an auction process for price discovery and proceeds to regular trading. The market is closed with the calculation of average closing price for each security taking into consideration the last one hour’s trading from the last trade.

The Exchange provides 2 mechanisms to process an order of an investor namely the ATS Front End (TFE) that has been provided by the Exchange to Broker Firms to input orders and the ATS Interface (ATSI) which interface third party order routing systems to the Trading System. Broker back office systems and broker internet order processing applications are interfaced to the trading system through the ATSI gateway.

The ATS Market Watch Front End (MWFE) provides the same facility as the TFE without the order entry function. The MWFE is provided to the Broker Firms and other market participants to monitor the market movement. An enhancement to the above is a Front End with automatic scrolling capability. This consists of two separate windows.

One window displays all trade executions whilst the other window displays security details. The screens scroll automatically and are updated dynamically. This facility is available at the Exchange and Broker Firms for investors to view trade executions and security statistics.

Why we should invest in Shares?

Let's see what are the benefits of Investing in Equity

• Capital Gains
  This is when a share's selling price exceeds its initial purchase price. If the selling price falls beyond the purchase price, you would make a capital loss. Capital Gains are free of tax.
• Dividends
  A company may decide to payout a portion of its earnings to shareholders. But companies are not required to pay dividends.
• Rights Issues
  The company may extend this privilege to existing shareholders to buy shares at a specified and usually discounted price, usually in proportion to the number of shares already owned.
• Distribution by the company
  Shares shall be offered to the holders of existing shares in a manner which would, if the offer was accepted, maintain the relative voting and distribution rights of those shareholders.
• Liquidity
  Shares quoted on a stock market are generally liquid. Therefore, they can be sold easily and you can get your money back in a few days.
• Higher Returns
  In the longer term, shares have ensured a higher return to investors.
• Hedge against inflationShares are a good investment in an inflationary environment, since share prices increase to protect investors from the effects of inflation.


• Collateral
  You may also use your shares as collateral against loan facilities to banks.
  

How to buy and sell shares in Colombo share market?

If you are NOT buying from Primary market (from a new issue -IPO) you should go through your Stockbroker
On the Secondary market an investor could either buy from or sell to another investor, subsequent to the original issuance in the primary market.
You must first find yourself a stockbroker /custodian bank and open a CDS account through that participant.

Once they confirm your CDS account number, you can contact your broker through

• Phone


• Fax


• Personal visit or


• The Internet (online trading)
  to trade in the secondary market.

You must clearly instruct your broker of the

• Name of the company


• Number of shares &


• The price

of the shares which you wish to buy or sell.

How Overseas Investors invest in The Colombo Stock Exchange (CSE)

Are you a foreign invester who is interested to invest in SriLanka share market?
The Colombo Stock Exchange (CSE) is a liberalized exchange and permits both non-nationals and expatriate Sri Lankans an opportunity to invest and also repatriate their investments and profits efficiently.
Overseas investors who wish to repatriate their investments and profits are required to open a Share Investment External Rupee Account (SIERA) with a Commercial Bank operating in Colombo to facilitate these transfers.
SIERA (Share Investment External Rupee Account)
The SIERA is a transactional account used for the purpose of making investments in Sri Lanka using foreign currency. The Investor who brings in foreign currency is permitted to repatriate the investment and profit without specific exchange control approval.
Documentation required to open a Share Investment External Rupee Account (SIERA)
1. Account opening forms and signature cards2. Copy of Passport3. Letter of Introduction
The following transactions could be routed through the SIERA
Debits
1. Payments for investments2. Debits in respect of the account holder's expenses in Sri Lanka3. Payments to brokers and bank charges4. Debits in respect of outward remittances of dividends and sale SSproceeds of shares and units of permitted unit trusts5. Funds payable pertaining to Stock borrowing and Lending SStransactions.
Credits
1. Inward remittances or NRFC/ FCBU transfers of the investor.2. Sales proceeds of shares and units of permitted unit trusts SSsupported by documentary evidence3. Dividend paid on shares supported by documentary evidence4. Commissions relating to item 2 and 3 above supported by SSdocumentary evidence.5. Funds received from participating in Stock borrowing and SSLending transactions.

Stock Brokers

The Colombo Stock Exchange (CSE) has fifteen (15) stock brokering firms, that offer brokering services to clients. Contact these companies as listed below..


Amana Securities Ltd

Asia Securities (pvt); Ltd

Bartleet Mallory Stockbrokers (Pvt) Ltd

Capital Alliance Holdings Ltd

Ceylinco Stockbrokers (pvt); Ltd

CT smith Stockbrokers (pvt); Ltd

DFCC stockbrokers (pvt); ltd

DP Global securities (pvt); Ltd

First Capital Ltd

HNB Stockbrokers (pvt); Ltd

JB Securities (pvt); Ltd

John Keells Stockbrokers (pvt); LTD

Lanka Orix Securities (Pvt) Ltd

Lanka Securities (Pvt); Ltd

MMBL Phillip Securities Ltd

NDBS Stockbrokers (Pvt) Ltd

SC Securities (pvt); Ltd

Seylan Merchant Bank Ltd

Somerville Stockbrokers

Taprobane Fund Management Ltd

CSE - Online Trading / Internet Trading

This is the big topic we are going to talk about. We believe Internet Trading is about empowering the individual investor. Since nowadays internet is easy access resource Online Trading will be the future of stock exchange.
An online investor gains convenience and saves time with direct access (through the stockbroker) to the trading system and 24-hour access to market information. But this depends on how much sophisticate your broker’s website is. Investors can rest assured if the system is fully secured.
As listed in CSE official website, Internet Trading at the CSE is facilitated via eighteen broker Firms. They are as follows:

• Acuity Stock Brokers (Pvt) Ltd
  
  Via http://www.cdax.lk/

Via http://www.cdax.lk/ - (Asia Securities. Asha Philip Securities. Ceylinco Stock Brokers. Lanka Securities. Acuity Stock Brokers.Capital Alliance. SMB Securities .)

• Amana Securities Ltd
  Via http://www.asl.lk/


• Asha Phillip Securities (Pvt) Ltd.
  Via http://www.ashaphillip.net/


• Asia Securities (Pvt) Ltd.
  Via http://www.asiacapital.lk/


• Bartleet Mallory Stockbrokers (Pvt) Ltd
  Via http://www.bartleetstock.com/


• Capital Alliance Securities (Pvt) Ltd
  Via http://www.capitalalliance.lk/


• Ceylinco Stockbrokers (Pvt) Ltd.
  Via http://www.ecsbl.com/


• CT Smith Stockbrokers (Pvt) Ltd
  Via http://www.ctsmithonline.com/


• DP Global Securities (Pvt) Ltd
  Via http://www.dpgsonline.com/


• First Guardian Equities (Pvt) Ltd
  Via http://www.firstguardianequities.com/


• HNB Stockbrokers (Pvt)Ltd
  Via http://www.hnbstock.com/


• JB Securities (Pvt) Ltd.
  Via http://www.jbs.lk/


• John Keells Stock Brokers (Pvt) Ltd
  Via http://www.jkstock.keells.lk/


• Capital Trust Securities (Pvt) Ltd.
  Via http://www.capitaltrust.lk/


• Lanka Securities (Pvt) Ltd
  Via http://www.lsl.lk/


• S C Securities (Pvt) Ltd
  Via http://online.sampathsecurities.lk/scswts/


• SMB Securities (Pvt) Ltd
  Via http://www.smblk.com/


• NDB Stockbrokers (Pvt) Ltd
  Via http://online.ndbs.lk/

Getting Started - How to buy Shares in Colombo Stock Exchange

Before this article you can read my previous post here..
Are you still confused with how to get started “investing” in Stock Exchange? We will try to explain you the process you should follow as simple as possible. But still you need to put some hard work to learn basics till you get familiarize with the process.
Steps: Individual Investors (Domestic)
Step 1: Normally four (4) forms namely CDS 1, CDS 1 (A) CDS 1 (B) & broker’s form has to be obtained through the broker or downloaded.
Step 2: All four forms have to be filled by the client.
Step 3: A signed copy of the National Identity Card or Passport should be enclosed with the form and submit to the broker. Also relevant utility bills should be attached as proof of residency. Then they will take care of it and will inform you.

How do you purchase shares?
There are two ways to purchase shares ..

• From a new issue of shares (Primary Market),The primary market is the market for new shares or debenture issues. Simply purchasing directly from the issuer (company). In a primary issue, the company offering the share/debenture issue publishes a document known as the prospectus. It is an invitation to the general public to buy shares or debentures of that company.
  
• On the Secondary Market through a stock broker.A market in which an investor could either buy or sell shares, debentures and Government Securities from or to another investor, subsequent to the original issuance in the primary market.

Is CDS safe?Almost yes, since CDS has taken measures to ensure the security of your shares. The company has back up facilities and procedures that would ensure business continuity in the event of anything happening either to the computer system or its usual premises. more at: Colombo Stock Exchange (Website: http://www.cse.lk/)
Good Trading!

Sri Lankan stock market capitalization climbed to a record

Sri Lankan stock market capitalization climbed to a record on Sep 17th as the end of the 26-year civil war boosted stocks, making the island’s benchmark index the best performer in Asia this year.

The South Asian country’s Colombo All-Share Index has gained 96 percent this year as the army defeated the Liberation Tamil Tigers of Eelam in May. The Colombo All-Share Index was the region’s third-worst performer in the past two years as record spending on defense strained government finances, and the country sought an International Monetary Fund loan.

The market value of the 238 stocks that constitute the All- Share Index climbed to 942.6 billion rupees ($8.2 billion) yesterday, the exchange said in a release posted on its Web site. That surpassed the earlier high set on Feb. 13, 2007, the bourse said.

Sri Lankan stocks may offer better returns as the end of civil war frees up government spending for investments in infrastructure and agriculture, investor Jim Rogers said last month. The end of almost three decades of civil war in May and a $2.6 billion loan from the International Monetary Fund helped restore investor confidence and attracted foreign flows, the central bank said July 23.

Standard & Poor’s raised its outlook on the island’s credit rating on Aug. 25 to stable from negative, citing improved foreign-exchange reserves.

The nation’s central bank raised its 2009 growth forecast to as much as 4.5 percent in July from an earlier estimate of 2.5 percent after the separatists’ defeat. Sri Lanka plans to raise $500 million from overseas investors to help rebuild the nation, central bank Governor Nivard Cabraal said in an interview on July 31.

Sri Lanka's stock market (CSE) slip on retail profit taking

CSE slipped from its over 30-month high on Friday as investors booked profits on retail shares amid heavy buying of market heavyweight John Keells Holdings (JKH.CM), traders and analysts said.

The market fell over 0.5 percent to 2,926.79 points in intra-day trade before closing down 0.16 percent or 4.61 points weaker at 2,939.44.

The bourse, on its website www.cse.lk, said the market capitalisation hit a record high of 942.6 billion rupees on Thursday, surpassing the previous peak of 938.6 billion rupees on Feb. 13, 2007.

The bourse rose 3.5 percent this week, after the central bank cut its key policy rates by 50 basis points last week and the central bank governor on Thursday said he wanted commercial banks to reduce lending rates further.


The Sri Lankan stock index has been rising since mid July on declining interest rates, high growth expectations, more market liquidity, increased confidence after an IMF loan, an upgraded rating outlook and foreign inflows.

The market is still one of the best performing stock markets in the world in 2009 with an average return of over 95 percent so far. It has risen 54 percent since the end of the war in mid-May.

Leading fixed-line phone operator Sri Lanka Telecom closed 2.1 percent weaker at 46 rupees a share, while Asian Hotels and Properties fell 1.96 percent to 75 rupees.

The rupee was unchanged for a fifth straight week at 114.80/85 a dollar as the central bank intervened to mop up dollars to prevent appreciation and build up its reserves. The central bank on Friday said it had bought $1.96 billion from the market since end-March, while the trade deficit for the first seven months of 2009 narrowed 57.2 percent. [ID:nCOL449635]

The central bank on Friday named J.P. Morgan Chase (JPM.N), HSBC (0005.HK) and Royal Bank of Scotland as lead managers of the Sri Lankan government's planned $500 million sovereign bond issue.

FAQ when open CDS accout

What is the purpose of my CDS account?
Your CDS account enables you to participate in paperless trading on the Colombo Stock Exchange. Your account will be maintained in double-entry book-keeping format and will be updated on real time as your participant lodges your transactions at CDS.
What is the reason for holding my securities in scrip-less form?
The trading system at the Colombo Stock Exchange is fully automated and thereby the paper securities you lodge in your CDS account are translated into an electronic portfolio. When you buy securities, your account is automatically credited with the shares purchased and the corresponding seller's account is automatically debited with the same amount. Thus the entire process is automated and involves no exchange of bills or certificates.

Who is a Participant?
A participant is a central depository agent, either a stockbroker or a custodian bank, who has been authorized by CDS to open accounts in CDS on behalf of investors.

Who are stockbrokers?
Stockbrokers are registered members of an Exchange, authorized to buy and sell shares. These stockbrokers provide their services to the investing public interested in trading in shares of listed companies.
The CSE has 15 member firms and 6 trading member firms authorized to buy and sell shares

What do I deposit in a CDS account?
Shares and bonds

Must I open a CDS account?
Yes, if you intend to trade in shares, which have been selected for depositing, through the Colombo Stock Exchange.

Can I use a different broker from the one I have been using?
You may maintain multiple accounts through several Participant organisations. You can also transfer securities across accounts held with different Participants.

Will it cost me more to use CDS?
No. There is absolutely no increase in cost for the CDS accountholder.
What is the process of depositing securities?
Visit a participant with the certificates you want to immobilize. Be sure you have already opened an account or are ready to do so. You will be issued with and assisted to complete a Security Deposit Form. Sign your form with the signature used when buying the shares. Return the form to the participant together with the certificates you have included on the form to be deposited. You will be given a receipt as evidence of your deposit. The participant will forward the form and the certificate to CDS CDS will forward the certificates and forms to the company’s shares registrar for verification. When the registrar confirms the certificates as genuine, the shares will be deposited in your account. Once the shares are in your account you can trade in them. How do you withdraw shares from CDS
You can withdraw shares from your account, using a withdrawal form that can be obtained from your broker, the CDS will facilitate the removal of shares from your account so that you may receive a scrip from the relevant company.

How does Intra- Account transfers occur?
You may also transfer part or all, of your portfolio between accounts opened through different participant firms. Once the Intra-Account transfer is completed and forwarded through the respective participant, the CDS will acknowledge by returning a duplicate of said form. Once checked for accuracy and completeness, the transfer will take effect.

The Exchange has permitted free transfers through different accounts in the CDS in order to accommodate foreign clients operating in different time zones to that of Sri Lanka on completion of the relevant form. However these transfers can only be effected before the expiry of two market days from the date of conclusion of the first transaction ( T +2); and only on condition that there would be no change in the fund settlement source indicated at the time of the first transaction as a result of the subsequent transfer

How does Inter-Account transfers occur?
Private Transfer of securities may also take place between account holders providing a valid relationship exists, prior approval of the Securities and Exchange Commission of Sri Lanka must be sought in order for such transfers to take place. However, in the instance of death of an account holder, securities may be transferred to next of kin, using the relevant CDS form without SEC approval.

What do I get to prove I have deposited securities?
You get the receipt of the deposit form You get a monthly statement if you have a deposit or a trade that month. You get a quarterly statement if you have not had a trade for three months. The statements are issued directly to your address as indicated on the account opening form. How Safe Is CDS?
CDS has taken measures to ensure the security of your shares. The company has back up facilities and procedures that would ensure business continuity in the event of anything happening either to the computer system or its usual premises. CDS has taken precautions to ensure its system is not interfered with. CDS has employed staff of high integrity and keep very high levels of confidentiality.
For more info..
Colombo Stock Exchange
Level 4,
West Block, World Trade Center, Echelon Square,
Colombo 01, Sri Lanka.
Tel:+94(11)2446581 (Hunting)Fax:+94(11)2445279
E-mail: info@cse.lk
Website: http://www.cse.lk/

How to buy Shares in Colombo Stock Exchange (CSE)?

Local InvestorsGo to any member (List of Brokers can be found at http://www.cse.lk/ ) of CSE & open CDS Account (The account which hold shares behalf of you until you sell it).Once your CDS Account is opened you are ready to buy & sell shares.
Foreign InvestorsFirst go to any commercial bank operating in Sri Lanka & open Share Investment External Rupee Account then contact a broker to open CDS account with your Passport Copy.
There are two ways to purchase shares
From a new issue of shares (Primary Market),The primary market is the market for new shares or debenture issues. In the primary market, the security is purchased directly from the issuer (company). In a primary issue, the company offering the share/debenture issue publishes a document known as the prospectus. It is an invitation to the generalpublic to buy shares or debentures of that company. On the Secondary Market through a stock broker.A market in which an investor could either buy or sell shares, debentures and Government Securities from or to another investor, subsequent to the original issuance in the primary market.
Types of securities traded at the CSE
Shares Corporate Debentures Government Securities
What is Central Depository Systems (Pvt) Ltd?
Central Depositors Systems (Pvt) Ltd is wholly owned Subsidiary of the CSE, which has taken over the functions of Clearing, Settlement and Registration from the Stock Exchange.

How do I open a CDS account?
To open a Securities Account in the CDS you should complete an Account Opening Form, which can be obtained from your stockbroker or custodian bank. There are no fees charged for opening a CDS account. Your participant organisation may call for documents establishing your identity. It is possible to open and operate an account on the same day.



Every account will be identified through a unique account number and all correspondence and dealings, including trading and depository activities, will refer to this account number. Your CDS accounts should be operated through your Participant organisation, and any changes to your account will have to be forwarded through theParticipant. You cannot issue instructions directly to the CDS.

For more info go to FAQ when open CDS accout

Update : you can read further Getting Started - How to buy Shares in Colombo Stock Exchange

What is a listed company?

When a company raises funds to support its growth by selling ownership interests (shares in itself) to the investing public, those shares need to be "listed" and traded on that country's stock exchange/s. These companies need to be in compliance with an Exchange's set of listing rules such as previous profit records, issued/paid up capital etc. in order to be admitted to the official list.

What is a Stock Exchange?

What is a Stock Exchange? and What is the Colombo Stock Exchange (CSE)?
Let's scan throughe cse.lk description abd get idea about what is this???
A Stock Exchange provides a liquid, open market for buying and selling of shares, debentures etc. of publicly owned companies. Companies, which use the mechanism of the stock market to raise debt or equity capital, commonly enter the stock market through issuing shares or debentures to the public. Sri Lanka's only stock exchange, the Colombo Stock Exchange (CSE) currently has 237 listed companies, 15 member firms, 5 trading members and one specialized debt trading member.
(want a dictionary or translator.. ??)
What is the Colombo Stock Exchange (CSE)?
The Colombo Stock Exchange (CSE) is the organization responsible for the operation of the stock market in Sri Lanka. The CSE is a company limited by guarantee established under the Companies Act No. 17 of 1982 and licensed by the Securities and Exchange Commission of Sri Lanka (SEC) to operate as a stock exchange in Sri Lanka.

History of Colombo Stock Exchange
Share trading in Sri Lanka Commenced in the 19th century. When British Planters needed funds to setup Tea Plantations in Sri Lanka. The Colombo Share Brokers Association commenced trading of shares in limited liability companies in 1896.A landmark event in the history of share trading in Sri Lanka was formation of “Colombo Securities Exchange (GTE) Ltd 1985, which took over operation of the stock market from the Colombo Share Brokers Association. It was renamed “ Colombo Stock Exchange (CSE) in 1990.