SRI LANKA: SEC Issues Guidelines to CSE

Tuesday October 10 2023

The Securities and Exchange Commission of Sri Lanka (SEC) decided to issue guidelines to the CSE in order for the CSE to take administrative sanctions in respect of non-compliances relating to the Listing Rules.

Therefore, the CSE is directed to take the following administrative sanctions in respect of non-compliances relating to the Listing Rules of the CSE as appropriate, subsequent to following the procedure stipulated as follows:

(1) The CSE to identify the non-compliances relating to the Listing Rules of the CSE in respect of the following:

a) Non-submission of Annual Reports;

b) Non-submission of Interim Financial Statements;

c) Non-disclosure/delayed disclosure of revision of ratings; and

d) Non-disclosure of material information as per the Section 8 of the CSE Listing Rules.

(2) The CSE to show cause the listed entity and the relevant Directors of such entity in respect of the aforesaid non-compliances relating to the Listing Rules of the CSE.

(3) To take one or more of the following enforcement measures upon considering the responses received:

(i) imposition of a penalty not exceeding Rupees 5 million in respect of the aforesaid non-compliances;

(ii) issuance of a letter of caution;

(iii) issuance of a letter of warning;

(iv) issuance of a public reprimand for the Board of Directors of a PLC which has committed the non-compliance;

(v) issuance of a letter directing the person who has committed such non-compliance until it is rectified;

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