CSE amends Listing Rules to facilitate secondary listing of foreign firms

The Colombo Stock Exchange has amended the Listing Rules to facilitate the secondary listings of foreign firms through the Multi Currency Board (MCB).

The CSE has also amended the Automated Trading Rules as well as the Central Depository System (CDS) Rules to facilitate 
the MCB.  As per the amended Listing Rules, which are set under Section 10 of the CSE Listing Rules, a foreign entity may list its shares denominated in a currency approved by the Central Bank of Sri Lanka, on the MCB of the CSE.

A foreign entity seeking a secondary listing on the MCB should be listed in the country of its incorporation and the regulator of capital markets of that country should be an ordinary member of the International Organisation of Securities Commissions.

Also, it should have capital equivalent to an amount of no less than US $ 10 million, converted at the exchange rate prevailing at the date of submission of the listing application. Investing and trading in shares listed on the MCB will only be permitted to non-resident investors, who operate through a custodian bank of CDS.