SEC Directive on Minimum Financial Requirements

SEC SECURITIES AND EXCHANGE COMMISSION OF SRI LANKA Office of the Director General

ශ්රී ලංකා සුරැකුම්පත් හා විනිමය කොමිෂන් සභාව இலங்கை பிணையங்கள் மற்றும் பரிவர்த்தனை ஆணைக்குழு

BY HAND
Ref: SEC/DG/2023/04/91

26th April 2023

TO: MARKET INTERMEDIARIES UNDER THE FOLLOWING CATEGORIES

DIRECTIVE ISSUED UNDER AND IN TERMS OF SECTION 16(C) OF THE SECURITIES AND EXCHANGE COMMISSION OF SRI LANKA ACT, NO. 19 OF 2021

RE: MINIMUM FINANCIAL REQUIREMENTS

The Securities and Exchange Commission of Sri Lanka at its 482nd meeting held on 03rd April 2023 resolved to stipulate "Minimum Financial Requirements" for the following categories of Market Intermediaries.

This Directive is issued in furtherance to the Rules applicable for Market Intermediaries issued via Gazette No. 2271/09 dated 15th March 2022 with the enactment of the Securities and Exchange Commission of Sri Lanka Act. No. 19 of 2021.

Market Intermediary Category	Minimum Shareholders' Funds Requirement (LKR)	Minimum Liquid Capital Requirement
Investment Manager	7.5 million	2.5% of Total Liabilities
Credit Rating Agency	15 million	2.5% of Total Liabilities
Margin Provider	30 million	2.5% of Total Liabilities
Managing Company	25 million	Not applicable for the Managing Company category as each Collective Investment Scheme under the respective Managing Company shall maintain liquidity levels as specified by the Commission in terms of the Collective Investment Scheme Code, 2022.
Underwriter	50 million	The Liquid Capital Requirement will be determined case by case, based on the value of the amount underwritten. Accordingly, at the time of obtaining approval of the SEC for any underwriting obligation, the entity shall demonstrate availability of Liquid Capital equivalent to the value of the amount underwritten.
Entities acting under multiple licensing categories	Highest value stipulated for applicable licensing categories	2.5% of Total Liabilities

This Directive shall be effective from the date hereof.

(Signature)

Chinthaka Mendis
DIRECTOR GENERAL

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