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FAQs

As an account holder what services would I be offered ?


As an account holder you will receive a statement once a month if you have made any share transactions during that month. If there have been no transactions, statements will be sent to account holders having securities balances, every six months on 30th June and 31st December.


Will I be charged if I wish to change my account details ?


The CDS will make the changes free of charge. Information change requests should, however be forwarded to CDS through your participant and be attended to the day such request is received by the CDS.


What services does the CDS offer free of charge ?


Deposit of Securities
Withdrawal of Securities
Intra and Inter Account Transfers
Clearing and Registration of Ownership


What about the maintenance of accounts ?


The registration of members of the relevant company are not updated every time a transaction occurs. However part of the Registration of members of every listed company is maintained on behalf of the CDS by the company. In the event of corporate actions the CDS will provide companies with a list of shareholders as at the date of entitlement for the purpose of calculating corporate entitlements of CDS account holders.


How do the settlements work out ?


The Colombo Stock Exchange has two different settlement cycles for equity and corporate debt transaction. The settlement Bank (Sampath Bank) of the CDS facilitates settlements between Participants for all market transactions.

Equity
A single tier settlement cycle of trade day + 3 (T+3) is adopted to settle transactions.


  • The buyer must make payment for shares bought by the 3rd trading day after the purchase (T+3)
  • The seller will receive payment for shares sold by the 3rd trading day after the sale (T+3)


Debt
For corporate debt securities all dues will be collected and paid a day after the transaction (T+1)


Is foreign investment in equity permitted without restrictions ?


Foreign investment in equity is permitted without restriction in listed companies up to 100% of the equity each company other than in 22 companies where foreign investment is restricted. A list of companies given below.



What is the procedure for investments and repatriation of proceeds for non residents ?



Investment in shares in Sri Lanka and repatriation of proceeds should take place through Share Investment External Rupee Accounts (SIERA) opened with commercial banks. Individuals, Regional Funds, as well as Companies incorporated outside Sri Lanka are permitted to open SIERA accounts.

Special provisions have been also been made in the Central Depository System to accommodate foreign clients operating in time zones different to that of Sri Lanka. The CSE has permitted free transfer between accounts in the system for transactions concluded by such clients. This transfer could be only affected before the expiry of two market days from the date of conclusion of the 1st transaction (T+2). It is necessary to ensure that there would be no change in the fund settlement source (same participant) indicated at the time of first transaction as a result of the subsequent transfer. Shares however shouldn't however be bought to a 'pool' account maintained by a foreign broker in order to be transferred under the scheme.


What is the procedure for investing non resident Sri Lankans ?


A special scheme exists for Sri Lankan who are non-residents to remit money for such investment in Sri Lankan through an account titled Rupee Account for nonresident in Sri Lankans (RANSI) Sri Lanka citizens who have proceeded abroad to take up employment elsewhere etc., and citizens of Sri Lanka who have made their permanent place abode outside Sri Lanka are considered non-residents for Exchange Control purposes. Non-resident Sri Lankan citizens have been exempted from such restrictions provided that they remit their foreign exchange earnings for investment through RANSI accounts maintained with commercial banks pointed as Authorized Dealers under the Exchange Control Act. Income from share investments and interest income from monies remitted are freely transferable out of the country without exchange control restrictions.

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