14 August 2024 12:04 am Views - 46
What is the role of the Broker Supervision Division at the CSE?
| CSE Senior Vice President Broker Supervision and Listed Entity Compliance Divisions Nilupa Perera |
The Broker Supervision Division is pivotal to ensure adequate protection for investors who engage the services of the trading participants. We strive to deliver a high level of service and maintain effective working relationships with the trading participants. By closely monitoring their activities, we ensure that the trading participants provide secure and trusted services to investors.
For this purpose, one of our primary responsibilities is ensuring that the trading participants of the CSE
(stockbrokers and stock dealers) adhere to the trading participant rules and circulars issued by the CSE as well as the directives issued by the Securities and Exchange Commission of Sri Lanka (SEC).
Further, we work diligently to ensure that the trading participants meet the minimum capital requirements set out in the CSE trading participant rules. Our division is dedicated to maintaining a secure, fair and orderly trading environment through effective monitoring and supervision of this key stakeholder group.
What are the new initiatives of the Broker Supervision Division?
Our Broker Supervision Division is dedicated to continuously enhance the regulatory environment to support a transparent and compliant trading ecosystem. One of our key initiatives is the introduction of new rules for the trading participants, pursuant to the new SEC Act designed to facilitate a robust regulatory framework. We are also adopting a risk-based approach in conducting on-site systems audits and off-site supervision of the trading participants.
Additionally, we have implemented rules that impose penalties on the trading participants who are non-compliant with the key rules set out in the Trading Participant Rules.
As part of our commitment to sustainability, we are in the process of introducing systems to facilitate communication with the trading participants more effectively.
Could you describe the role of the Listed Entity Compliance Division at the CSE?
The Listed Entity Compliance Division plays a crucial role in promoting good corporate governance practices and ensuring fair and transparent financial reporting among the listed companies. Our main goal is to safeguard the interests of investors by ensuring that the listed entities act in compliance with the CSE Listing Rules.
We conduct comprehensive reviews of interim financial statements and annual reports to ensure accuracy and adherence to the CSE Listing Rules. Our division closely monitors compliance with corporate governance requirements and minimum public holding requirements. Identifying non-compliances, which require appropriate enforcement actions, is an important function we perform. Handling investor complaints against the listed companies and overseeing the delisting processes are some of the other key responsibilities of the division.
What are the new initiatives of the Listed Entity Compliance Division?
The Corporate Governance Rules were updated on October 01, 2023, marking the first major revision after 15 years. The new rules now cover chairman-CEO duality, the fit and proper criteria for directors and CEOs, mandatory policies, nominations and governance committees. Additionally, a new framework has been established to initiate enforcement actions against the listed companies for non-compliance with the key CSE Listing Rules.
Furthermore, the Listed Entity Compliance Division is currently working on implementing the XBRL reporting system in the Sri Lankan capital market. This initiative aims to improve transparency and build confidence by making it easier for investors, analysts and regulators to understand and analyse the financial statements of the listed entities.
Perera’s insights underscore the CSE’s commitment to maintaining a secure and compliant trading environment while fostering good corporate governance and transparency among listed entities.