Regulatory Alerts2016-11-22
Added · Updated
Mandatory implementation of risk based capital adequacy requirements
The Securities and Exchange Commission of Sri Lanka directs all licensed stock brokers, excluding those licensed only to trade in debt securities, to maintain a minimum Capital Adequacy Ratio of 1.2 and a minimum liquid capital of Rs. 35 million effective 1 March 2017. Stock brokers must compute and notify their Capital Adequacy Requirements to the Colombo Stock Exchange and the Commission daily by 09:00 hours on the following market day. If a firm fails to meet the minimum requirements five times in thirty days or seven times in three months, the Chief Executive Officer of the Colombo Stock Exchange must prohibit the firm from carrying out any purchase of securities. The Colombo Stock Exchange is required to implement these rules, incorporate them into its Stock Broker Rules, and inform all affected stock brokers.
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