What is a Stock Exchange? A Stock Exchange provides a liquid, open market for buying and selling of shares, debentures etc. of publicly owned companies. Companies, which use the mechanism of the stock market to raise debt or equity capital, commonly enter the stock market through issuing shares or debentures to the public. What is a listed company? When a company raises funds to support its growth by selling ownership interests (shares in itself) to the investing public, those shares need to be "listed" and traded on that country's stock exchange/s. These companies need to be in compliance with an Exchange's set of listing rules such as previous profit records, issued/paid up capital etc. in order to be admitted to the official list. What is the Colombo Stock Exchange (CSE)? The Colombo Stock Exchange (CSE) is the organization responsible for the operation of the stock market in Sri Lanka. The CSE is a company limited by guarantee duly established in Sri Lanka and licensed by the Securities and Exchange Commission of Sri Lanka (SEC) to operate as a stock exchange in Sri Lanka. How do I purchase shares? There are two ways to purchase shares
Transcript
What is a Stock Exchange?
A Stock Exchange provides a liquid, open market for buying and selling of shares, debentures etc. of publicly owned companies. Companies, which use the mechanism of the stock market to raise debt or equity capital, commonly enter the stock market through issuing shares or debentures to the public.
What is a listed company?
When a company raises funds to support its growth by selling ownership interests (shares in itself) to the investing public, those shares need to be "listed" and traded on that country's stock exchange/s. These companies need to be in compliance with an Exchange's set of listing rules such as previous profit records, issued/paid up capital etc. in order to be admitted to the official list.
What is the Colombo Stock Exchange (CSE)?
The Colombo Stock Exchange (CSE) is the organization responsible for the operation of the stock market in Sri Lanka. The CSE is a company limited by guarantee duly established in Sri Lanka and licensed by the Securities and Exchange Commission of Sri Lanka (SEC) to operate as a stock exchange in Sri Lanka.
How do I purchase shares?
There are two ways to purchase shares
From a new issue of shares (Primary Market) -The primary market is the market for new shares or debenture issues. In the primary market, the security is purchased directly from the issuer (company). In a primary issue, the company offering the share/debenture issue publishes a document known as the prospectus. It is an invitation to the generalpublic to buy shares or debentures of that company.
On the Secondary Market through a stock broker -A market in which an investor could either buy or sell shares, debentures and Government Securities from or to another investor, subsequent to the original issuance in the primary market.
Types of securities traded at the CSE
Shares (Voting and Non-Voting)
Corporate Debentures
Government Securities
Warrants
Closed End Funds
What is Central Depository Systems (Pvt) Ltd?
Central Depositors Systems (Pvt) Ltd (CDS) is a wholly owned subsidiary of the CSE, which has taken over the functions of Clearing, Settlement and Registration from the Stock Exchange.
How do I open a CDS account?
To open a Securities Account in the CDS you should complete an Account Opening Form, which can be obtained from your stockbroker or custodian bank. There are no fees charged for opening a CDS account. Your participant organization may call for documents establishing your identity. It is possible to open and operate an account on the same day.
Every account will be identified through a unique account number and all correspondence and dealings, including trading and depository activities, will refer to this account number.
Your CDS accounts should be operated through your Participant organization, and any changes to your account will have to be forwarded through theParticipant. You cannot issue instructions directly to the CDS.
What is the purpose of my CDS account?
Your CDS account enables you to participate in paperless trading on the Colombo Stock Exchange. Your account will be maintained in double-entry book-keeping format and will be updated on real time as your participant lodges your transactions at CDS.
What is the reason for holding my securities in scrip-less form?
The trading system at the Colombo Stock Exchange is fully automated and thereby the paper securities you lodge in your CDS account are translated into an electronic portfolio. When you buy securities, your account is automatically credited with the shares purchased and the corresponding seller's account is automatically debited with the same amount. Thus the entire process is automated and involves no exchange of bills or certificates.
Who is a Participant?
A participant is a central depository agent, either a stockbroker or a custodian bank, who has been authorized by CDS to open accounts in CDS on behalf of investors.
Who are stockbrokers?
Stockbrokers are registered members of an Exchange, authorized to buy and sell shares. These stockbrokers provide their services to the investing public interested in trading in shares of listed companies.
The CSE has 15 member firms and 7 trading member firms authorized to buy and sell shares
What do I deposit in a CDS account?
Shares, debentures, warrants, government securities and units of closed end funds
Must I open a CDS account?
Yes, if you intend to trade in shares, which have been selected for depositing, through the Colombo Stock Exchange.
Can I use a different broker from the one I have been using?
You may maintain multiple accounts through several Participant organisations. You can also transfer securities across accounts held with different Participants.
Will it cost me more to use CDS?
No. There is absolutely no increase in cost for the CDS accountholder.
What is the process of depositing securities?
Visit a participant with the certificates you want to immobilize. Be sure you have already opened an account or are ready to do so.
You will be issued with and assisted to complete a Security Deposit Form.
Sign your form with the signature used when buying the shares.
Return the form to the participant together with the certificates you have included on the form to be deposited.
You will be given a receipt as evidence of your deposit.
The participant will forward the form and the certificate to CDS
CDS will forward the certificates and forms to the company’s shares registrar for verification.
When the registrar confirms the certificates as genuine, the shares will be deposited in your account.
Once the shares are in your account you can trade in them.
How do you withdraw shares from CDS?
You can withdraw shares from your account, using a withdrawal form that can be obtained from your broker, the CDS will facilitate the removal of shares from your account so that you may receive a scrip from the relevant company.
How does Intra- Account transfers occur?
You may also transfer part or all, of your portfolio between accounts opened through different participant firms. Once the Intra-Account transfer is completed and forwarded through the respective participant, the CDS will acknowledge by returning a duplicate of said form. Once checked for accuracy and completeness, the transfer will take effect.
The Exchange has permitted free transfers through different accounts in the CDS in order to accommodate foreign clients operating in different time zones to that of Sri Lanka on completion of the relevant form. However these transfers can only be effected before the expiry of two market days from the date of conclusion of the first transaction ( T +2); and only on condition that there would be no change in the fund settlement source indicated at the time of the first transaction as a result of the subsequent transfer
How does Inter-Account transfers occur?
Private Transfer of securities may also take place between account holders providing a valid relationship exists, prior approval of the Securities and Exchange Commission of Sri Lanka must be sought in order for such transfers to take place. However, in the instance of death of an account holder, securities may be transferred to next of kin, using the relevant CDS form without SEC approval.
What do I get to prove I have deposited securities?
You get the receipt of the deposit form You get a monthly statement if you have a deposit or a trade that month.
You get a quarterly statement if you have not had a trade for three months.
The statements are issued directly to your address as indicated on the account opening form.
How Safe Is CDS?
CDS has taken measures to ensure the security of your shares. The company has back up facilities and procedures that would ensure business continuity in the event of anything happening either to the computer system or its usual premises. CDS has taken precautions to ensure its system is not interfered with. CDS has employed staff of high integrity and keep very high levels of confidentiality.
Colombo Stock ExchangeLevel 4, West Block, World Trade Center, Echelon Square, Colombo 01, Sri Lanka.Tel:+94(11)2446581 (Hunting)Fax:+94(11)2445279E-mail: [email protected]: www.cse.lk
What is a share?
A share represents your ownership in a company. As a part owner you are investing in the future growth of the company.
What are the types of shares?
Ordinary Shares (N)
A right to vote at the company's Annual General Meeting. An entitlement to a share of dividends declared.
If the company is liquidated, shareholders will be settled after all the creditors, depositors, debt holder dues has been settled.
Non-Voting Ordinary Shares (X)
These shares have the same characteristics of Ordinary shares except the right to vote at the company's Annual General Meeting.
Preference Shares (P)
Most preference shares have a pre-determined dividend rate which you are entitled to receive.
A claim on the company's earnings before payment to ordinary shareholders.
Entitled to priority over ordinary shares if the company liquidates.
This is a certificate giving you the right to buy shares at a stipulated price at a future date.
Is investing in shares risky?
There is an element of risk. However there are strategies to reduce and manage risk through the diversifying strategy
1. Your portfolio can be a mix of equity and debt instruments.2. In the share market (equities), you can invest in several sectors. Thereby in an instance when one sector performs badly and another very well, you can offset your losses in one sector from the gains you made in the other sector.3. Within a sector you can invest in several companies. Thereby if one company does not do well, your entire investment returns do not suffer as other companies may perform well.
Benefits of Investing in Equity
Capital Gains -This is when a share's selling price exceed its initial purchase price. If the selling price falls beyond the purchase price, you would make a capital loss. Capital Gains are free of tax.
Dividends -A company may decide to payout a portion of its earnings to shareholders. But companies are not required to pay dividends.
Rights Issues -The company may extend this privilege to existing shareholders to buy shares at a specified and usually a discounted price, usually in proportion to the number of shares already owned.
Distribution by the company -Shares shall be offered to the holders of existing shares in a manner which would, if the offer was accepted, maintain the relative voting and distribution rights of those shareholders.
Liquidity -Shares quoted on a stock market are generally liquid. Therefore, they can be sold easily and you can get your money back in a few days.
Higher Returns -In the longer term, shares have ensured a higher return to investors.
Hedge against inflation -Shares are a good investment in an inflationary environment, since share prices increase to protect investors from the effects of inflation.
How do you buy/ sell shares?
1. In the Primary market from a new issue (IPO)
Shares can be purchased directly from the issuing company. The company publishes a prospectus with information about the company, financial status, future plans and the offer.
To buy shares: Once you have read the prospectus carefully, you may fill up an application form to purchase the shares. You can lodge these shares directly into the Central Depository System (CDS) of the CSE or hold the certificate.
To sell shares: You will have to open a CDS account through a stockbroker and instruct them to sell your shares in the secondary market.
2. On the Secondary market through a Stockbroker
This is a market in which an investor could either buy from or sell to another investor, subsequent to the original issuance in the primary market.
You must first find yourself a stockbroker /custodian bank and open a CDS account through that participant.
Once they confirm your CDS account number, you can contact your broker through the following ways to trade in the secondary market.
Phone Fax
Personal visit or
The Internet
You must clearly instruct your broker of the
Name of the company Number of shares
The price
of the shares which you wish to buy or sell.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)
Transactions up to Rs. 50 Million - 1.02%Divided as follows:
Transactions over Rs. 50 Million Divided as follows:
Minimum brokerage (floor) - 0.200%
CSE Fees - 0.0525%
CDS Fees - 0.0150%
SEC Fees - 0.0450%
Share Transaction Levy - 0.200%
The CSE trading records will indicate the brokerage as zero for transactions over Rs. 50 Mn. The Broker Firms are expected to insert 0.2000% or a higher percentage which is negotiated with the client as the brokerage before printing the Bought/Sold Notes
Taxation
No withholding tax or stamp duties are charged on transactions. However, a 10% tax is charged on Dividends, deducted at source.
How do you obtain information?
CSE Website www.cse.lk CSE Publications
Stockbroker websites
Newspapers and business Magazines
Business programmes on TV
Information vendors such as Reuters, Bloomberg, Associated Press etc.
COLOMBO STOCK EXCHANGELevel 4, West Block,World Trade Centre, Echelon Square,Colombo 1, Sri Lanka.Tel: 94-11-2446581(Hunting)Fax: 94-11-2445279E-mail: [email protected]: www.cse.lk
Foreign Investment in Shares Home /
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Foreign Investment in Shares
Issuance of shares by resident companies to foreign investors (non residents) is permitted without prior approval of the Exchange Control Department (ECD) in terms of a general
permission granted in Gazette Notification No.1232/14 of 19/04/2002 and 1248/19 of 08/08/2002 subject to certain exclusions, limitations and conditions. In the areas of investment, movement of funds of such transactions will be through a scheme of account titled, "Securities Investment Account" (SIA).
The SIA should be credited by inward remittances received in convertible foreign currencies from the investors and the dividends and sale proceeds realized on this investment are remittable through this account.
Permission has been granted for the issue and transfer of shares in a company up to 100% of the issued capital of such company, to approved country funds, approved regional funds, corporate bodies incorporated outside Sri Lanka and individuals resident outside Sri Lanka (inclusive of Sri Lankans resident outside Sri Lanka) subject to the exclusions, limitations and conditions hereinafter set out.
Exclusions: the permission granted shall not apply in respect of shares of a company proposing to carry on or carrying on any of the following businesses:
i. Money lendingii. Pawn broking
iii. Retail trade with a capital of less than One Million US Dollars.
iv. Coastal fishing
Limitations:
a. The permission granted shall apply in respect of shares in a company carrying on or proposing to carry on any of the following businesses only up to 40% of the issued capital of such company, or if approval has been granted by the Board of Investment of Sri Lanka for a higher percentage of foreign investment in any company, only up to such higher percentage.
i. Production of goods where Sri Lanka's exports are subject to internationally determined quota restrictions;
ii. Growing and primary processing of tea, rubber, coconut, cocoa, rice, sugar and spices;
iii. Mining and primary processing of non renewable national resources;
iv. Timber based industries using local timber;
v. Fishing (deep sea fishing);
vi. Mass communications;
vii. Education;
viii. Freight forwarding;
ix. Travel agencies;
x. Shipping agencies.
b. The permission granted shall apply in respect of shares of a company carrying on or proposing to carry on any of the businesses set out below only up to the percentage of the issued capital of the company for which percentage either general or special approval has been granted by the Government of Sri Lanka or any legal or administrative authority set up for the approval of foreign investment in such businesses.
i. Air transportation;
ii. Coastal shipping;
iii. Industrial undertaking in the Second Schedule of the Industrial Promotion Act. No.46 of 1990, namely
Any industry manufacturing arms, ammunitions, explosives, military vehicles and equipment aircraft and other military hardware;
Any industry manufacturing poisons, narcotics, alcohols, dangerous drugs and toxic, hazardous or carcinogenic materials;
Any industry producing currency, coins or security documents;
iv. Large scale mechanized mining of gems;
v. Lotteries.
Conditions:
a. A person resident outside Sri Lanka who is a party to a transaction permitted hereunder must make a declaration to the effect that such person is resident outside Sri Lanka on the share transfer form or share application form as applicable.
b. The payment for shares in any issue or transaction permitted hereunder should be made only out of or into a Securities Investment Account (SIA) opened in a commercial bank of Sri Lanka in accordance with directions given by the Controller of Exchange in that behalf to commercial banks.
c. A commercial bank, a licensed stock broker or any other person entrusted with the payment of capital monies such as sale proceeds of shares, dividends and commissions in respect of any transaction permitted hereunder shall make such payment only into or out of a Securities Investment Account referred to in sub paragraph (b) above.
d. The Secretary/ Registrar to a company in which the issue or transfer of shares to persons resident outside Sri Lanka are limited under 'limitations' shall not register the name of any person resident outside Sri Lanka or a citizen of a foreign State or their nominee as a share holder in such company if by such registration the limits specified shall be exceeded.
Securities Investment Accounts (SIA)
Permitted credits and debits to SIA are given below.
1. Permitted Credits
i. Inward remittances received from abroad through banking system,ii. Transfer of funds from NRFC/FCBU/RNNFC accounts of the same account holder,
iii. Sale proceeds realized out of sale or transfer or maturity of T- bonds/ T- bills or any income realized by way of capital gain thereof,
iv. Sale proceeds of shares supported by documentary evidence (Broker's Contract Notes and evidence of payments of tax etc.) and dividends,
v. Dividend income on units of unit trusts net of tax supported by documentary evidence,
vi. Proceeds on redemption of units net of tax supported by documentary evidence,
vii. Commissions relating to share transactions with supporting evidence,
viii. Liquidation proceeds of companies,
ix. Interest received on T-bonds, and
x. Other all credits permitted on shares in terms of Operating Instructions No. 06/02/12/2001 dated 06.11.2001 in respect of Stock Borrowings and Lending (SBL) transactions
2. Permitted Debits
i. Payments for investment in shares /units of unit trusts / T-bonds/ T-bills,ii. Outward remittances of sale/redemption/maturity or liquidation proceeds of shares/ units/
T-bonds/ T-bills and dividends of shares or units,
iii. Payments to brokers, primary dealers, lead managers, management company of a unit trust and bank charges,
iv. Payments for local expenses of the account holder,
v. Transfer of funds to the accounts maintained by the account holder at FCBU, and
vi. All debits permitted in our Operating Instructions No. 06/02/12/2001 of 06.11.2001 in respect of SBL transactions on shares.
Other issues with regard to investment in Sri Lanka through a SIA
Foreign currency remitted by foreign investors as subscription for primary shares may be held in an off-shore banking unit and upon allotment of shares be transferred, to the SIA of the same investor. Authorized Dealers who are licensed commercial banks are permitted to approve applications for export of share certificates issued by companies in the CSE in respect of shares purchased by SIA account holders out of the funds in the account.
Overdraft Facilities, Credit Interest on SIA:As per Central Bank regulations, foreign investors are NOT PERMITTED to overdraw nor earn interest (credit/debit balances). Cheque Books are not issued.
Initial Deposit, based on bank's practices, should be via Inward Remittance equivalent in foreign currency.
Rupee Accounts for Non Resident Sri Lankan Investment (RANSI)
Rupee Accounts for Non-Resident Sri Lankan Investment is a special account to encourage Sri Lankan citizens residing outside Sri Lanka to remit their foreign exchange earnings for investment in Sri Lanka.
The account is to be maintained in Sri Lanka Rupees. Joint accounts are not permitted under this scheme.
Who is eligible to open an account?- Sri Lankan citizens who are permanent residents of other countries.- Sri Lankan citizens who have proceeded outside Sri Lanka for taking up employment or setting up in a business or profession and continue to reside abroad.
Funds channelled through this account may be invested in shares, government securities, debentures, units in Unit Trusts and in real assets such as land and building.
Source: Central Bank of Sri Lanka
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To invest in the Colombo Stock Market, all Investors must maintain an Account in the Central Depository System (CDS). Foreign Investors may operate their CDS Account either directly through a Stockbroker Firm or through a Commercial Bank offering Custody Services. Please click here to obtain a list of documents required in opening a CDS account.
Please refer CDS Participants section to obtain a list of Stockbrokers & Commercial Banks offering Custody Services.
Trading Sessions Home /
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Trading Sessions
Trading Sessions
The Exchange is open for continuous trading from Monday to Friday from 9.30 a.m. to 2.30 p.m.
Secondary trading of corporate and government debt securities through the DEX takes place from 9.30a.m. to 12.30p.m.
The trading sessions for equity as follows:
Market Phase Time Days
Pre-open 9:00 - 9:30
Monday - Friday (Except Public Holidays)Open Auction 9:30
Normal Trading 9:30 - 14:30
Closing 14:30
Pre- OpenDuring pre-open (9.00 am to 9.30 am) the system accepts orders. These orders can be amended and cancelled during pre-open. However, no trades take place during this stage. Orders during this period are held in the ATS and will be forwarded to the execution engine at Open Auction time.
Open Auction During open-auction (09.30 am), the system temporarily closes the order book and starts matching orders. It establishes the opening price and determines the orders to be executed according to the rules for the open-auction period (Automated Trading Rule 4).
Regular Trading During regular trading (09.30 am to 2.30 pm) new orders are continually matched to existing orders in the order book. If an order cannot be executed, it is stored in the order book.
Market Close Market closes at 2.30 pm.
Market Halt In the event the Milanka Price Index (MPI) (or the index that may replace the MPI in the future) drops 5% within the day from the previous market day's close, a "Market Halt" be imposed on all equity securities for a period of 30 minutes. This is effective from 2nd January 2009. Market wide index based circuit breakers are imposed by stock exchanges to halt trading of equity securities in order to provide a "cooling off" period when there is an unusual movement in the index. Broker Firms may cancel any pending orders during the "Market Halt". However Broker Firms cannot enter new orders or amend pending orders during the "Market Halt".
How to Find a Stockbroker Home /
Getting Started
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How to Find a Stockbroker
Who is a Stockbroker?
A stockbroker is a firm that acts as an intermediary for stock market transactions, offering
investors a variety of services in addition to investment advice and executing buy/ sell orders of investors. The Stockbroker's fee is the brokerage.
There are 15 Member Firms and 6 Trading Members at the Colombo Stock Exchange (CSE). They are governed by the regulations set out by the CSE and licensed by the Securities and Exchange Commission (SEC). It is mandatory for you to obtain the services of a stockbroker when transacting in the secondary market.
What services do they provide?
Intermediation
1. Investment adviceExecute and confirm buy / sell transactionsSettlement of transactions - T+3 for Equities and Delivery vs Payment (DVP) for Corporate and Government debtFollow-up on defaulters and Portfolio Management
2. Research
Most brokers have a research unit that studies the market in general and specific companies in particular. With this research they are able to recommend shares for you to purchase. They publish research in the form of
Sector reports Daily & Weekly reports
Company specific reports
Daily valuation reports
The broker makes recommendations to the best of his ability and should not be liable in case the recommendation is found to be incorrect.
3. Margin Trading
Broker Firms could provide this service, to its clients, subject to a registration to be obtained from SEC.
4. Corporate Finance Activities
Advise and facilitate takeovers and mergersSponsoring listing applications for companies.
Client Registration & documentation
Opening of Securities Accounts Deposit of Securities
Withdrawal of Securities
Transfer of Securities
Provision of Contract Notes
Settlement of transactions
Providing information
Assistance and information dissemination with regard to new issues
Qualities of an Investment Advisor
The Stockbroker should act in the client's best interest. Therefore, he should possess the following qualities.
CompetenceHe should be qualified and experienced and have a thorough knowledge of market behaviour. Your investment advisor should hold the Investment Advisor Certification or be certified by the SEC.
IntegrityThe stockbroker should give fair treatment to his clients, and not for his personal gain. He must account for all transactions properly.
Knowledge about "what's happening around"The Investment Advisor should possess knowledge on the needs of the client and market
behaviour which is affected by political, economic, legal, natural, social and technological factors.
ForecastingThis is the process of analyzing current and historical data to determine future trends. Stock analysts use various forecasting methods to determine future stock price movements, earnings, etc.
What are their fees?
Transactions up to Rs. 50 Million - 1.02%Divided as follows:
Transactions over Rs. 50 Million Divided as follows:
Minimum brokerage (floor) - 0.200%
CSE Fees - 0.0525%
CDS Fees - 0.0150%
SEC Fees - 0.0450%
Share Transaction Levy - 0.200%
The CSE trading records will indicate the brokerage as zero for transactions over Rs. 50 Mn. The Broker Firms are expected to insert 0.2000% or a higher percentage which is negotiated with the client as the brokerage before printing the Bought/Sold Notes
Investor ComplaintsIf you have a complaint, first inform the Compliance Officer of your broker firm in writing. The Compliance Officer should be able to help you and resolve the complaint. If you are not satisfied
or if the broker delays a decision, you can forward your complaint to the CSE for investigation. The Secretariat of the CSE will deal with the complaint thereafter.
If you are not satisfied with the decision of the Secretariat, an appeal can be made to the Dispute Resolution Committee (DRC), to review the decision made by the Secretariat. Thereafter, the decision made by the DRC will be verified by the Board of Directors and conveyed to you.
Transaction Costs Home /
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Transaction Costs
Transaction Costs
Transaction cost applicable for equity & debt securities given below:
Equity - with effect from 1st January 2011
Transactions up to Rs. 50 Million - 1.12%Divided as follows:
(Subject to a minimum brokerage of Rs. 10/- per contract and a minimum CDS fee of Rs. 5/-)
The CSE trading records will indicate the brokerage as zero for transactions over Rs. 50 Mn. The Broker Firms are expected to insert 0.2000% or a higher percentage which is negotiated with the client as the brokerage before printing the Bought/Sold Notes.
Intra day Trading
With effect from 15th February 2006, the transaction fee due to the broker, CSE, CDS and SEC on intra day trades, where a client buys and sells or sells and buys the same security on the same day through the same broker will not be charged on one side of the transaction.
(Please note that Share Transaction Levy will be charged on both sides of the Transaction)
a. In the event the total number of shares purchased does not equal the total number of shares sold, the transaction fees as detailed above will not be levied on the lower quantity of shares either purchased or sold.
b. In the event the total quantity purchased is equal to the total quantity sold the transaction fees will not be levied from the sales transaction.
Please note that the total purchases and sales of a client in the same security will be considered for purpose of determining the exemption of the Brokerage, CSE, CDS and SEC fees (transaction fee).
Eg:
i. Client X's trades in ABC shares on particular day
No transaction fee will be levied on the 900 shares purchased, apart from the Share Transaction Levy.
Odd lots, Crossing and AON trades will not be considered for the exemption of Brokerage, CSE, CDS and SEC fees.
Note:
A Member Firm may share 50% of the brokerage with a foreign broker if a foreign broker is involved in a transaction.
Corporate Debt
Brokerage - Negotiable Fees (SEC, CSE & CDS) - 2 Basis Points (D ivided equally amongst the three institutions)
Government Debt
Brokerage - NegotiableFees (SEC, CSE & CDS) - Nil
Closed End Funds
Fees based on a Percentage (%) of the Transaction value
Brokerage Negotiable with a Cap of 1 %
CSE Fee 0.02%CDS Fee 0.01%SEC Cess 0.02%
Share Transaction Levy will not be applicable for units of Closed-end Funds.
Trading Systems Home /
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Trading Systems
Trading Systems
The CSE offers advanced infrastructure and systems for the trading of equity and debt instruments through two trading systems. Post trade clearing and settlement of transactions is executed through the CDS system.
The Automated Trading System (ATS) is an online, real time system which is efficient, fault tolerant and transparent, and provides for the secondary trading of equity. The ATS version 4 has recorded 99.8% system uptime.
The ATS provides
High speed execution of transactions Order matching on Price - Time priority
Information of price & volumes of securities being traded
Online reporting of trades being executed & price indices
Corporate announcements
Information on status of pending orders
Information on Client Holdings
The Debt Securities Trading System (DEX) is designed to facilitate the trading of corporate and government debt securities. The system has been instrumental in facilitating the secondary trading of the beneficial interest in government treasury bills and bonds. All corporate debentures listed on the CSE are also traded through the DEX.
