CSE invites Trading Members to OTC platform based on revised criteria

The Colombo Stock Exchange (CSE) is in the process of admitting new Trading Members under revised criteria to carry out Repurchase (REPO) transactions on debt securities on its Over The Counter (OTC) platform. 
The new criteria is introduced as an initiative of the product expansion line-up of CSE, projected towards establishing and further enhancing a vibrant REPO market for Debt Securities listed on the CSE. 
The new criteria will further regularise opportunities for investors, trading members and other corporates involved in the fixed income securities market in Sri Lanka. 
In view of this development, the CSE invites applications for new Trading Members from eligible entities to carry out REPO transactions on debt securities on the OTC platform implemented by them recently.

Entities entitled to apply for Trading Membership of the CSE are: Institutions appointed by the Central Bank of Sri Lanka (CBSL) as an ‘Authorized Primary Dealer’, Commercial banks licensed by the CBSL which are incorporated under the Companies Act No. 07 of 2007 or companies which are incorporated under the Companies Act No. 07 of 2007 and engaged in trading/dealing with fixed income securities. Commencement of trading operations will be subject to new Trading Members obtaining a licence from the Securities and Exchange Commission of Sri Lanka (SEC) as a stock dealer and a stockbroker.  
Applicants admitted as Trading Members would be required to comply with the rules and other administrative and operational requirements of the CSE, the Central Depository System (Pvt) Ltd. (CDS), as well as other regulatory bodies and the Financial Intelligence Unit of the CBSL that have been set up to prevent money laundering.The selected Trading Members will be admitted as Trading Members of the CSE under Article 3A of the Articles of Association of the CSE and will not be entitled to vote at General Meetings or share in the capitalisation of the assets of CSE, in the event the CSE is demutualised at a future date. 
Those applying for new Trading Memberships to carry out REPO transactions on debt securities on the OTC Platform of the CSE should complete the application form available on the CSE website (www.cse.lk) and forward the duly completed application as per the procedure mentioned.