Thursday October 3 2024
News Source: Global Exchanges
Focus: Listing Rules
Type: General
Country: Sri Lanka
On 3rd October 2024, the Colombo Stock Exchange (CSE) announced that the listing rules of the exchange have been revised to facilitate the listing of High Yield Corporate Debt Securities on the CSE.
The amended Listing Rules have been approved by the Securities and Exchange Commission of Sri Lanka (SEC). The amendments are set out below:
| Rule No. | Rule |
| Definitions section | A common definition included in respect of ‘Qualified Investors” |
| 2.2.1 (c) (a) (ii) and 2.2.1 (C) (b) (H) | Proviso on the applicability of an investment grade rating for the High Yield Corporate Debt Securities |
| 2.2.1. (t) (III) | Instances where an applicant Entity shall be prohibited from issuing High Yield Corporate Debt Securities |
| 2.2.”1′ (r) | The eligibility criteria to be satisfied by an entity seeking to issue and list High Yield Corporate Debt Securities |
| 2.2.2 (n) | Additional documents to be submitted to the CSE that are specific to the listing of High Yield Corporate Debt Securities |
| 3.214(0), 3.310(0), 3.413(0) and 3.5.5 (C) | Additional disclosures to be included to the Prospectus/Introductory Document in relation to coupon payments which are specific to High Yield Corporate Debt Securities |
| 3.2.20(i), 3.3.15(i), 3.4,11(j) and 3.5.7(h) | Additional disclosures to-be included to the Prospectus /introductory Document specific to High Yield Corporate Debt Securities |
| 7.4 (c) (A) (i) | Enforcement Pacuare for non—submission/delayed submission of Interim Financial Statements |
| 7.5 (e) | Enforcement Procedure for non-submission/delayed submission of Annual Reports |
| 7.4 (c) (A) and 7.5 (e) | Amendments to the Rules titles to be in line with the current market practice |
| 7.6 (xxii) | Additional disclosures relating to High Yield Corporate Debt Securities in the Annual Report |
| 7.12.1 | Expansion to the scope of the Rule by recognizing introductory Documents |
| 7.122 (e) | Exclusion of entities that have High Yield Corporate Debt Securities listed in the CSE from being subject to the enforcement procedure relating to non-disclosure/delay in disclosure of revisions rating/rating agency |
| 7.12.3 (E) | Enforcement action relating to identified non-compliances by entities relating to High Yield Corporate Debt Securities |
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