Thursday October 17 2019

News Source: Global Exchanges

Focus: Listing Rules

Type: General

Country: Sri Lanka

Link: https://bit.ly/2qdLlIf




On 16th October 2019, the Colombo Stock Exchange (CSE) published the directive for incorporation of enforcement to be implemented on listed public companies violating listing requirements of the Colombo Stock Exchange.

The Securities and Exchange Commission of Sri Lanka (SEC) at its 394th and 395th meetings held on 4th August 2017 and 14th August 2017 respectively, having deliberated on the adequacy of the current Listing Rules of the CSE relating to the enforcement procedures applicable to listed public companies, decided to adopt a more stringent policy of enforcement.

It was decided to direct the CSE to incorporate Rules drafted in relation to;

  1. Violations of Rules on corporate governance by listed public companies;
  2. Late Submission or non-submission of interim financial statements by listed public companies;
  3. Late submission or non-submission of annual reports by listed public companies;
  4. Incidence of modified audit opinions in the audited financial statements of listed public companies; and
  5. Incidence of an emphasis of matter on going concern in the audited financial statements of listed public companies.

The CSE is hereby directed to;

  1. Incorporate the enforcement procedures contained in Annexure I to the Listing Rules of the CSE as a matter of priority, with necessary changes in numbering as appropriate;
  2. Give effect to the enforcement procedures contained in Annexure I from 1st January 2018; [For purposes of clarity, the enforcement procedures in respect of ‘modified audit opinions’ and ‘emphasis of matter on going concern’ shall take effect for all Annual Reports and Audited Financial Statements released after 1st January 2018]
  3. Rename the ‘Default Board’ as the ‘Watch List’;
  4. Confirm compliance with the Directive by submission to the SEC of the relevant sections of the Listing Rules as amended; and
  5. Inform all listed public companies of the enforcement procedures as set out in Annexure I and their effective dates, pending incorporation to the Listing Rules of the CSE.

Please find the following link to Annexure I containing the Rules on enforcement procedure for listed public companies violating the Listing Rules of the CSE.

Click on the above link for further information.