Regulatory Alerts2024-01-01
SEC Sri Lanka Directive on Additional Requirements for Collective Investment Schemes
The Securities and Exchange Commission of Sri Lanka issued a directive mandating that Managing Companies launch approved Collective Investment Schemes within six months of approval or face invalidation. The regulator requires these companies to submit standardized monthly returns by the 20th day of the following month, with documents signed by the CEO, Compliance Officer, and Trustee. These measures aim to streamline reporting standards and eliminate delays in the launch of new investment schemes.
SECURITIES AND EXCHANGE COMMISSION OF SRI LANKA
ශ්රී ලංකා සුරැකුම්පත් හා විනිමය කොමිෂන් සභාව இலங்கை பிணையங்கள் மற்றும் பரிவர்த்தனை ஆணைக்குழு
4th October 2024
Ref: SEC/SUP/2024/10/477
TO: ALL MANAGING COMPANIES OF COLLECTIVE INVESTMENT SCHEMES (CIS)
DIRECTIVE ISSUED UNDER SECTION 16(c) OF THE SECURITIES AND EXCHANGE COMMISSION OF SRI LANKA ACT, NO. 19 OF 2021
ADDITIONAL REQUIREMENTS FOR A COLLECTIVE INVESTMENT SCHEME
With a view of streamlining and standardizing the reporting requirements of CIS and to eliminate undue delays for launch of new Schemes, the Securities and Exchange Commission of Sri Lanka (the SEC) at its 505th meeting held on 06th August 2024 resolved to stipulate additional requirements pertaining to the submission of monthly returns and commencement of a CIS.
Accordingly, the SEC hereby directs the Managing Companies of CIS in terms of Sections 16(c) of the SEC Act No. 19 of 2021 to implement the additional regulatory requirements stipulated below.
1. COMMENCEMENT OF A CIS
The Managing Companies shall ensure that a CIS approved by the SEC is launched and commence operations within a period of six (6) months from the date of approval.
In the event the Managing Company fails to commence operations of the said Scheme no later than six (6) months from the date of approval, of the said Scheme shall cease to be valid and a fresh application shall be submitted by the Managing Company to the SEC in the event the Managing Company wishes to proceed with such a Scheme.
2. MONTHLY RETURNS OF A CIS
Further to Rule 52 of the SEC Rules applicable to Managing Companies, the Managing Companies shall submit information of monthly returns pertaining to each CIS in the format attached hereto, on a monthly basis to reach the SEC on or before the 20th day of the following month.
The monthly returns shall be approved and signed by the Chief Executive Officer and the Compliance Officer of the Managing Company and head of trustee who handles the functions of the Trustee.
It is the responsibility of the Managing Company to obtain requisite approvals and signatures from the Trustee of the CIS as stipulated above.
This Directive shall be effective from the date hereof.
[Signature]
Chinthaka Mendis DIRECTOR GENERAL
APPROVED UNIT TRUST SCHEMES MONTHLY RETURN TO THE SECURITIES AND EXCHANGE COMMISSION OF SRI LANKA
Name of the Management Company Name of the Fund Month Ended Type of the Fund (As a drop down menu)
Summary
| Units | Value (Rs.) | |
|---|---|---|
| Number of Units at the beginning of the month | ||
| Creations/Sales during the month | ||
| Redemptions during the month | ||
| Number of Units at the end of the month |
| Net Asset Value(NAV) at the end of the period (Rs.) | - |
| Net Asset Value per Unit | #DIV/0! |
| Liquid assets as a percentage of NAV | #DIV/0! |
| Number of unit holders at the end of the period |
Equity Investments
| Listed Company shares | No of shares | Cost Rs. | Market Value Rs. | Percentage of NAV | Percentage of Increase/(Decrease) in Value |
|---|---|---|---|---|---|
| Automobiles & Components | |||||
| Banks | |||||
| Capital Goods | |||||
| Commercial & Professional Services | |||||
| Consumer Durables & Apparel | |||||
| Consumer Services | |||||
| Diversified Financials | |||||
| Energy | |||||
| Food & Staples Retailing | |||||
| Food, Beverage & Tobacco | |||||
| Health Care Equipment & Services | |||||
| Household & Personal Products | |||||
| Insurance | |||||
| Materials | |||||
| Pharmaceuticals, Biotechnology & Life Sciences | |||||
| Real Estate Management & Development | |||||
| Retailing | |||||
| Software & Services | |||||
| Telecommunication Services | |||||
| Transportation | |||||
| Utilities | |||||
| Total | - | - | - |
| Unquoted equity Investments | |||||
|---|---|---|---|---|---|
| Share Applications | |||||
| Debenture Applications | |||||
| Total | - | - | - |
Fixed income investments
| Investments with maturity more than 3 months | Cost Rs. | Market Value Rs. | Percentage of NAV | Percentage of Increase/(Decrease) in Value |
|---|---|---|---|---|
| Treasury Bonds | ||||
| Treasury Bills | ||||
| Listed Debentures | ||||
| Unlisted Debentures | ||||
| Commercial Papers | ||||
| Trust Certificates | ||||
| Asset Backed/Securitised Papers | ||||
| Fixed Deposits | ||||
| Call Deposits | ||||
| Treasury Bond Repo | ||||
| Treasury Bill Repo | ||||
| Corporate Instruments REPO (Commercial Paper REPO etc) | ||||
| others (please specify) | ||||
| Total | - | - | - |
| Investments with maturity less than 3 months | Cost Rs. | Market Value Rs. | Percentage of NAV | Percentage of Increase/(Decrease) in Value |
|---|---|---|---|---|
| Treasury Bonds | ||||
| Treasury Bills | ||||
| Listed Debentures | ||||
| Unlisted Debentures | ||||
| Commercial Papers | ||||
| Trust Certificates | ||||
| Asset Backed/Securitised instruments | ||||
| Fixed Deposits | ||||
| Call Deposits | ||||
| Treasury Bond Repo | ||||
| Treasury Bill Repo | ||||
| Corporate Instruments REPO (Commercial Paper REPO etc) | ||||
| Money Market Savings | ||||
| others (please specify) | ||||
| Cash | ||||
| Total | - | - | - |
| Other Assets | Cost Rs. | Market Value Rs. | Percentage of NAV | Percentage of Increase/(Decrease) in Value |
|---|---|---|---|---|
| Income tax recoverable | ||||
| Other receivables (please specify) | ||||
| Total | - | - | - |
| Other Adjustments and liabilities | Cost Rs. | Market Value Rs. | Percentage of NAV | Percentage of Increase/(Decrease) in Value |
|---|---|---|---|---|
| Borrowings (please specify) | ||||
| Management Fee Payable | ||||
| Custody Fee Payable | ||||
| Trustee Fee Payable | ||||
| Funds under Transfer | ||||
| Preliminary expenses | ||||
| Audit Fees Accrued | ||||
| Other Payable (please specify) | ||||
| Total | - | - | - | |
| Net Asset Value | - | - | - |
Additional Information
Investments in Listed Equity
| Name of the Financial Institution | Number of shares | Closing Price | Market Value of the Investments | Percentage Exposure to Each Financial Institution Against |
|---|---|---|---|---|
Investments in Listed Entity - Listed Debt (25% of the NAV)
| Name of the Issuer | Amount of Investment (Rs.) | Investment Commencing Date | Investment Maturity Date | Period of Investment | Rate of interest (Net) | Market Value | Credit Rating of the Issuer/Security | Percentage Exposure to Each Financial Institution Against the NAV of the Fund |
|---|---|---|---|---|---|---|---|---|
| ABC Finance PLC | ||||||||
| ABC Finance PLC | ||||||||
| ABC Finance PLC | ||||||||
| ABC Finance PLC | ||||||||
| ABC Finance PLC | ||||||||
| ABC Finance PLC | ||||||||
| ABC Finance PLC | ||||||||
| Total of ABC Finance PLC | ||||||||
| PQR Bank PLC | ||||||||
| PQR Bank PLC | ||||||||
| PQR Bank PLC | ||||||||
| PQR Bank PLC | ||||||||
| Total of PQR Bank PLC | ||||||||
| EFG Finance PLC | ||||||||
| EFG Finance PLC | ||||||||
| EFG Finance PLC | ||||||||
| Total of EFG Finance PLC | ||||||||
| XYZ Co. Ltd | ||||||||
| XYZ Co. Ltd | ||||||||
| XYZ Co. Ltd | ||||||||
| XYZ Co. Ltd | ||||||||
| XYZ Co. Ltd | ||||||||
| Total of XYZ Co. Ltd |
Listed Entity Unlisted Debt (15% of the NAV) [Commercial Paper, Trust Certificates, Unlised Debentures, Wakala, Other (Please specify the Instrument)]
| Name of the Financial Institution | Type of Instrument | Amount of Investment (Rs.) | Investment Commencing Date | Investment Maturity Date | Period of investment | Rate of interest | Market Value | Credit Rating of the Issuer/Security or guarantee from a Licensed Commercial Bank | Percentage Exposure to Each Financial Institution Against the NAV of the Fund |
|---|---|---|---|---|---|---|---|---|---|
| ABC Finance PLC | |||||||||
| ABC Finance PLC | |||||||||
| ABC Finance PLC | |||||||||
| Total of ABC Finance PLC | |||||||||
| PQR Bank PLC | |||||||||
| PQR Bank PLC | |||||||||
| PQR Bank PLC | |||||||||
| PQR Bank PLC | |||||||||
| Total of PQR Bank PLC | |||||||||
| EFG Finance PLC | |||||||||
| EFG Finance PLC | |||||||||
| EFG Finance PLC | |||||||||
| Total of EFG Finance PLC | |||||||||
| XYZ Co. Ltd | |||||||||
| XYZ Co. Ltd | |||||||||
| Total of XYZ Co. Ltd |
Unlisted Entity listed Debt (25% of the NAV)
| Name of the Financial Institution | Type of Instrument | Amount of Investment (Rs.) | Investment Commencing Date | Investment Maturity Date | Period of investment | Rate of interest | Market Value | Credit Rating of the Issuer/Security or guarantee from a Licensed Commercial Bank | Percentage Exposure to Each Financial Institution Against the NAV of the Fund |
|---|---|---|---|---|---|---|---|---|---|
| ABC Finance PLC | |||||||||
| ABC Finance PLC | |||||||||
| ABC Finance PLC | |||||||||
| Total of ABC Finance PLC | |||||||||
| PQR Bank PLC | |||||||||
| PQR Bank PLC | |||||||||
| PQR Bank PLC | |||||||||
| PQR Bank PLC | |||||||||
| Total of PQR Bank PLC | |||||||||
| EFG Finance PLC | |||||||||
| EFG Finance PLC | |||||||||
| EFG Finance PLC | |||||||||
| Total of EFG Finance PLC |
Unlisted Entity Unlisted Debt (10% of the NAV)
| Name of the Financial Institution | Type of Instrument | Amount of Investment (Rs.) | Investment Commencing Date | Investment Maturity Date | Period of investment | Rate of interest | Market Value | Credit Rating of the Issuer/Security or guarantee from a Licensed Commercial Bank | Percentage Exposure to Each Financial Institution Against the NAV of the Fund |
|---|---|---|---|---|---|---|---|---|---|
| ABC Finance PLC | |||||||||
| ABC Finance PLC | |||||||||
| ABC Finance PLC | |||||||||
| Total of ABC Finance PLC | |||||||||
| PQR Bank PLC | |||||||||
| PQR Bank PLC | |||||||||
| PQR Bank PLC | |||||||||
| PQR Bank PLC | |||||||||
| Total of PQR Bank PLC | |||||||||
| EFG Finance PLC | |||||||||
| EFG Finance PLC | |||||||||
| EFG Finance PLC | |||||||||
| Total of EFG Finance PLC |
Government Securities
| Type of Instrument / Name of the Issuer | ISIN Code | Amount of Investment | Investment Commencing Date | Investment Maturity Date | Yield on each Investment | Market Value | Percentage Exposure to Each Financial Institution Against the NAV of the Fund |
|---|---|---|---|---|---|---|---|
| EFG Finance PLC | |||||||
| ABC bank | |||||||
| ABC bank | |||||||
| Total of ABC Bank |
Repo on Government Securities
| Name of the Issuer | ISIN No. of the Underlying Security | Amount of Investment | Investment Commencing Date | Investment Maturity Date | Rate of Interest | Cost + Accrued Interest | Percentage Exposure to Each Financial Institution Against the NAV of the Fund |
|---|---|---|---|---|---|---|---|
| Total |
Commercial Banks, Specialized Bank or Finance Company (25% of NAV)
| Name of the Institution | Amount of Investment | Investment Commencing Date | Investment Maturity Date | Rate of Interest | Market Value of the Underlying Security | Percentage Exposure to Each Financial Institution Against the NAV of the Fund |
|---|---|---|---|---|---|---|
| EFG Finance PLC | ||||||
| Total of EFG | ||||||
| ABC bank | ||||||
| ABC bank | ||||||
| Total of ABC Bank |
Investments in CIS (5% of own Schemes and 10% of other Schemes of NAV)
| Name of the Company | Name of the Scheme | Amount of Investment (Rs.) | Market Value | Credit Rating obtained if any | Percentage Exposure to Each Financial Institution Against the NAV of the Fund |
|---|---|---|---|---|---|
Investments in Listed Companies [listed equity, listed debt, unlisted debt]
| Name of the Financial Institution | Percentage Exposure to Each Financial Institution Against the NAV of the Fund |
|---|---|
Investments in Unlisted Companies [listed debt, unlisted debt]
| Name of the Financial Institution | Percentage Exposure to Each Financial Institution Against the NAV of the Fund |
|---|---|