By Ashwin Hemmathagama

– Our Lobby Correspondent

The Bill providing for the demutualisation of the Colombo Stock Exchange (CSE) by the conversion of the CSE, which is a company limited by guarantee, to a company limited by shares, was moved in the Parliament yesterday.

According to the Ministry of National Policies and Economic Affairs, the Securities Exchange Commission (SEC) will submit the proposed articles of association of the demutualised stock exchange, the names of the persons to be appointed as directors, and the names of the initial shareholders of the demutualised stock exchange within nine months.

Based on the submissions from the SEC, the Minister of National Policies and Economic Affairs will direct the Registrar General of Companies to register the Colombo Stock Exchange as a company limited by shares, and the date on which the demutualised stock exchange is registered will be referred to as the date of Conversion. Subsequent to necessary gazette notifications, the Board of Directors of the demutualised stock exchange will determine the number of shares to be issued of the demutualised stock exchange, and value of the reserves to be converted to share capital for such purpose, within a period of one month from the date of conversion.

The demutualised stock exchange will issue a maximum 40% of the shares, to be issued of the demutualised stock exchange immediately upon the determination made in terms of section 6, to members subject to the limitation on shares, to be issued to individual members as specified in section 8. The members shall only be entitled to the proceeds of sale of the balance shares, to be issued of the demutualised stock exchange allocated to members in terms of section 6, and issued in terms of subsection (1).

Liability Management bill presented in P’ment

The Ministry of National Policies and Economic Affairs moved the Active Liability Management Bill yesterday in the Parliament with the aim to authorise the raising of loans within the country or offshore to improve public debt management.

The Bill also ensures that the financial needs and payment obligations of the Government are met at the lowest possible cost over the medium to long-term consistent with a prudent degree of risk.

However, the Parliament may, from time to time, by resolution, approve to raise a sum of money during a particular financial year which will not exceed 10% of the total outstanding debt as at the end of the preceding financial year, as a loan whether in or outside Sri Lanka, in terms of the relevant laws for moneys to be raised including the provisions of the Monetary Law Act (Chapter 422), the Local Treasury Bills Ordinance (Chapter 417), Registered Stocks and Securities Ordinance (Chapter 420), or the Foreign Loans Act, No. 29 of 1957, for and on behalf of the Government for the purposes of refinancing and pre-financing of public debts of the Government.