Regulatory Alerts2016-11-17
Revision of Rules on Minimum Public Holding Applicable to All Listed Public Companies
The Securities and Exchange Commission of Sri Lanka issued a directive on November 17, 2016, revising the minimum public holding thresholds for listed companies on the Colombo Stock Exchange. The new rules provide companies with multiple compliance options based on float-adjusted market capitalization, public holding percentage, and the number of public shareholders, effective January 1, 2017. Companies failing to meet these requirements by December 31, 2016, are granted a six-month grace period until June 30, 2017, after which non-compliant firms face demotion to a secondary board and enforcement actions.
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