Regulatory Alerts2014-04-29
Reconciliation of the definition of Public Holding
The Securities and Exchange Commission of Sri Lanka directed the Colombo Stock Exchange to adopt a unified definition of Public Holding to resolve inconsistencies between lock-in rules and minimum public float directives. This directive mandates that the definition from directive SEC/LEG/13/12/37 serves as the common standard, requiring corresponding amendments to the definitions of non-public shareholders in directives SEC/LEG/13/08/38 and SEC/LEG/13/10/16. The statement in directive SEC/LEG/13/12/37 conflicting with these definitions is revoked immediately, while the eligibility criteria in directive SEC/LEG/13/10/16 prevail in case of any conflict.
SEC SECURITIES AND EXCHANGE COMMISSION OF SRI LANKA இலங்கை பிணையங்கள் மற்றும் பரிவர்த்தனை ஆணைக்குழு
By Hand
24th April 2014
Ref: SEC/LEG/14/04/32
To: The Colombo Stock Exchange
Directive issued under Section 13 (c) of the Securities and Exchange Commission of Sri Lanka Act No. 36 of 1987 (as amended)
The Securities and Exchange Commission of Sri Lanka (SEC) at its 334th meeting held on 8th April 2014 having deliberated on the practical issues arising from the calculation of the number and percentage of public share holding pursuant to the different definitions adopted in respect of Public Holding in the lock-in rules and the maintenance of a minimum public holding issued by way of directives, decided to reconcile the inconsistency.
Therefore the Colombo Stock Exchange is hereby directed to adopt and incorporate the definition of Public Holding in the Listing Rules of the Colombo Stock Exchange pursuant to the directive issued bearing reference SEC/LEG/13/12/37 dated 20th December 2013 on the maintenance of a minimum public float as the common definition of Public Holding. To effect the said definition of public holding, the definition of non public shareholders provided in directives SEC/LEG/13/08/38 dated 23rd August 2013 and SEC/LEG/13/10/16 dated 11th October 2013 shall stand amended accordingly.
The statement made with respect to the directives SEC/LEG/13/08/38 dated 23rd August 2013 and SEC/LEG/13/10/16 dated 11th October 2013 respectively at the end of Rule 10 of the directive SEC/LEG/13/12/37 dated 20th December 2013 on the maintenance of a minimum public float shall be revoked with immediate effect.
For avoidance of doubt the eligibility criteria stipulated in the re-instatement of introductions directive SEC/LEG/13/10/16 dated 11th October 2013 shall prevail in the event of any conflict with the present directive.
The Colombo Stock Exchange is further directed to inform all public listed companies of this directive.
This directive shall come into effect from this date hereof.
(Signature)
S Fernando (Ms) Officer-in-Charge AA/SW
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