Monday 6 February 2017

SEC introduces new fee structure for Colombo share transactions

(LBO) – Sri Lanka’s securities regulator has introduced a new fee structure for all share transactions following a request from the CSE to review the transaction fees applicable to CSE and CDS.

SEC said in a statement that the CSE proposed adopting a step-up fee structure rather than the present flat fee structure when consolidating transactions for the purpose of computing fees.

CSE has also proposed to increase the threshold for the two-band fee structure from the present 50 million rupees to 100 million rupees.

“The basis for the request was that levying fees on a ‘flat’ basis is not equitable since transaction fees payable on a marginally lower turnover is higher than fees payable for a marginally higher-value transaction,” the SEC said.

Accordingly, the Securities and Exchange Commission at a meeting held on 10th January 2017 has approved the proposal of new fee structure put forth by the CSE which appears below.

All licensed stock brokers and stock dealers trading in equity securities have been directed to comply with the new fee structure when paying the CSE and CDS fees in respect of all share transactions.

“New directive will be effective from March 01, 2017.”

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