Colombo Stock Exchange

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Colombo Stock Exchange

The Colombo Stock Exchange (CSE) is the main stock exchange in Sri Lanka. It is located in Colombo, the commercial capital of the country. The CSE provides a platform for trading a wide range of securities, including equities, debt securities, and derivatives. The exchange is regulated by the Securities and Exchange Commission of Sri Lanka (SEC).

History

The Colombo Stock Exchange was established in 1985, succeeding the Colombo Share Brokers Association, which was formed in 1896. The CSE has grown significantly over the years, becoming a key player in the South Asian financial markets.

Structure

The CSE operates under a demutualized structure, meaning it is owned by its members but operates independently. The exchange is governed by a Board of Directors, which includes representatives from the SEC, member firms, and independent directors.

Trading System

The CSE uses an automated trading system known as the Automated Trading System (ATS). This system facilitates the electronic trading of securities, ensuring transparency and efficiency in the market. The trading hours are from 9:30 AM to 2:30 PM on weekdays.

Market Segments

The CSE is divided into several market segments, including:

• The Main Board: For larger, well-established companies.
• The Diri Savi Board: For smaller and medium-sized enterprises.
• The Debt Securities Market: For trading corporate and government debt instruments.

Indices

The CSE has several indices that track the performance of the market, including:

• The All Share Price Index (ASPI)
• The S&P Sri Lanka 20 Index

Regulation

The CSE is regulated by the Securities and Exchange Commission of Sri Lanka, which ensures that the exchange operates in a fair and transparent manner. The SEC sets the rules and regulations for trading, listing, and disclosure requirements.

Membership

Membership in the CSE is open to licensed stockbrokers and stock dealers. Members are required to adhere to the rules and regulations set by the CSE and the SEC.

Related Pages

• Securities and Exchange Commission of Sri Lanka
• Stock exchange
• Equity (finance)
• Debt security
• Derivative (finance)
• Automated trading system
• Index (finance)