CCP by first quarter 2017: CSE Chairman

(LBO) – Sri Lanka’s Colombo Stock Exchange aims to establish the Central Counter Party (CCP) system, a new risk management system, by early 2017, a senior official said.

“We have to properly draft the laws. This is a difficult task but we are doing that with the help of some consultants,” Vajira Kulathilake, chairman Colombo Stock Exchange said.

“I expect by 2017 first quarter it will come and through this we can bring in new products to attract foreign investor too.”

The CCP will allow delivery upon settlement and establishing a derivatives market including short selling which will raise the Colombo bourse to international standards.

Kulathilake says that the proposed Securities and Exchange Commission act will be the legal back bone for the CCP while the proposed demutualization process would help with the governance side.

“The SEC act will be the legal back bone of the all the things that we are proposing to do, not only criminal but also civil proceedings,” he said.

“We will start the demutualization process soon and this will help the governance side.”

Analysts say that the present SEC Act was introduced in 1987 and though there were three amendments thereafter, an overall review of the provisions to align it to the global market trends has not been done.

“It has been a long time – changes have happened new products have come in and people have found ways to avoid regulation. So it is time that all this is covered,” he said.

“So actually the new act is a must to regulate these things.”

ASCOT Holdings warrants conversion after January 28

(LBO) – ASCOT Holdings warrants conversion is to be carried out after January 28 as the warrants will cease to trade today, the company said in a stock exchange filing.

The holders of the warrants are entitled to exchange their warrants with an equal number of ordinary shares of the company at 25.00 rupees per share during the exercise period commencing January 28 to February 18.

“Warrants in respect of which the right to convert into ordinary shares are not exercised on or before 4.00 p.m. on expiration date shall have no right thereafter.” the company further said.

Sri Lanka sells US$235mn in floating rate bonds

ECONOMYNEXT - Sri Lanka has sold 235 million US dollars of floating rate bonds for settlement on January 21, with one year bills being sold most, data from the state debt office showed.

The debt office sold 233 million dollars of 12-month bills, at 358.64 percent above the 6-month London Interbank Offered Rate.

The debt office also sold 2.0 million dollars of 2-year 3-month bills at 417.5 basis points above the London Interbank Offered Rate.

The date of settlement is January 21, 2016.

Sri Lanka Krrish deal tax breaks to be lowered

ECONOMYNEXT - A mixed development project by India's Krrish group which ran into a controversy during the last regime can still go ahead but as a new project with tax incentives revised lower, an official said.

"It came as a strategic investment that required certain undertakings from their part," Director General of Sri Lanka's Board of Investment, Duminda Ariyasinghe told reporters.

"Obviously some of them haven't been met. We are revising downwards the incentives that we offer."

The Krrish group has submitted a fresh investment proposal that the BOI is discussing, he said.

Under Sri Lanka's Strategic Investment Law companies were able to get sweeping tax breaks, with up to 15 to 20 year tax holidays but the new administration has said the law will not be used.

Bank of Tokyo - Mitsubishi UFJ opens office Thursday

The Bank of Tokyo- Mitsubishi UFJ will open its first representative office in Sri Lanka on Thursday January 21.

This is the first approval granted to a Japanese bank by the Central Bank of Sri Lanka.Through the new representative office in Colombo, the bank will continue to further enhance its financial solutions and offerings to better meet the needs of its customers operating in or trading with Sri Lanka by making the most of its extensive network, which is the largest among Japanese banks.
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RPC shareholder nod for ESOP

The Shareholders of Richard Pieris and Company PLC (the Company) at an Extraordinary General Meeting held on July 29, 2015 approved the Employee Share Option Plan (ESOP).

This is by way of a Special Resolution thereby allowing issue of shares under this scheme, which is equivalent to 5% of the Issued Capital of the Company. (2,959,639 Ordinary Shares at the date of passing the Resolution) The Board of Directors of the Company at a meeting held on 24th August 2005 resolved to implement the ESOP and to issue 1959,639 shares, which is equivalent to 5% of the Issued Capital of the Company at an option price of Rs. 100per share.

The Scheme would be dissolved on August 24, 2018 as the Company will not be permitted to make any further extensions to the Scheme.

(SS)
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TRC revises mobile call, SMS rates

The Telecom Regulatory Commission (TRC) has introduced a new common floor rate for the Sri Lanka telecom industry. This will be with effect from February 1. “The idea is to set a new minimum rate creating a level playing field for all operators,” an official from the TRC said. “It will enable small time operators also to be competitive.”

Under the circular issued by TRC, Short Messages (SMS’) will be increased from the current cents 10 to 20. In addition call charges within the same network between two subscribers too will be increased by cents 50. (Rs. 1.50) This will be for post paid users (on per minute billing.) In the pre paid segment, a call made to a different operator will be reduced from the current Rs. 2.50 to Rs. 1.80. As for the pre paid users with the network the tariff will be increased from Rs. 1.50 to 1.80.

(SS)


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