Sri Lanka Equity Forum
Dear Reader,

Registration with the Sri Lanka Equity Forum would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
Sri Lanka Equity Forum

Discussion Forum for Stock Market Investors in Sri Lanka

සිංහල පරිවර්තනය
Submit Post
Submit Post
Market Place

Add an ad

View all ads

Latest topics

» LLUB Pattern reversed. Good buy @60, target +20%
by MarketWch Today at 1:46 pm

» collect LLUB AND LEDV AND ECL ALONG WITH BFN
by MarketWch Today at 1:45 pm

» LLUB in RISK...Government opened a Plant in Muthurajawela...Becareful
by MarketWch Today at 1:44 pm

» Keep eye on Politics
by Yahapalanaya Today at 9:46 am

» HEXP 2ND DIVIDEND
by Cricketman Today at 5:21 am

» AEL Recommendation @ 14...
by ddrperera Yesterday at 9:20 pm

» Cut your losses without sinking in it, that's the only way to win in a falling market.
by bhanu Sun Jun 23, 2019 7:38 pm

» Senthilverl Drives Sri Lanka Stock Market Turnover to hit Rs.2 billion
by samaritan Sun Jun 23, 2019 10:57 am

» Dockyard can go beyond 60/-
by hammurabi Sun Jun 23, 2019 10:53 am

» lOFC definitely will hit 6/-
by BANDB Sat Jun 22, 2019 8:31 am

» Why should we elect Naganada kodi..as our next president
by Yahapalanaya Sat Jun 22, 2019 4:56 am

» SAMP Oversubscribed?
by Agape Fri Jun 21, 2019 4:52 pm

» LOFC - LDEV -EXPO ....BULL RUN TIME FOR COLLECTION ..
by Aruna Chandana Fri Jun 21, 2019 1:26 pm

» NEXT RUN People's leasing and Finance WAIT AND WATCH ENJOY RIDE..
by ddrperera Fri Jun 21, 2019 12:04 pm

» http://www.ft.lk/news/Controversial--Takeover-Act--repealed-by-Parliament/56-680434
by Capton KIng Cool Fri Jun 21, 2019 11:58 am

» SME M&A opportunity
by raheem72@gmail.com Fri Jun 21, 2019 11:41 am

» CIND , 10% guaranteed return
by Teller Fri Jun 21, 2019 2:46 am

» Look PAP Amazing company
by Teller Fri Jun 21, 2019 2:44 am

» Bottom of market
by Teller Thu Jun 20, 2019 10:52 pm

» Triple Top Reversal pattern
by Teller Thu Jun 20, 2019 9:16 pm

» BFN - PRIVATE PLACEMENT ANNOUNCEMENT TO COME SOON
by mahasona2 Thu Jun 20, 2019 1:00 pm

» Why AAIC Should trade above RS.50/-
by wisdom79 Thu Jun 20, 2019 12:38 pm

» PAN ASIA POWER
by Nuwan Samarawickrama Thu Jun 20, 2019 10:33 am

» Aluf will be better
by wisdom79 Thu Jun 20, 2019 8:50 am

» Stop promoting garbage. Don’t get deceived.
by wisdom79 Thu Jun 20, 2019 8:46 am

» RICH is not bad @ 9/-
by Teller Thu Jun 20, 2019 3:18 am

» BFN බොරු සෙලින් දාලා කොහොම හරි 11 වගේ ගානට 500000 එකතු කරගන්න කියලා අර 14 ට ලක්ශයක් සෙලින් දැම්මේ මේ ටේලර් මහත්තයාම තමයි
by Teller Thu Jun 20, 2019 3:16 am

» Be careful with HVA and LITE
by Teller Thu Jun 20, 2019 3:11 am

» WATA future looks good
by Teller Wed Jun 19, 2019 10:00 pm

» If i am the EPF buyer,I will go for PLC
by Teller Wed Jun 19, 2019 9:59 pm

» THE CURSE ON JKH
by Teller Wed Jun 19, 2019 9:04 am

» Why we should buy AEL.N0000…?
by Miss-Sangeetha Wed Jun 19, 2019 7:45 am

» The Curse Of AEL
by Yahapalanaya Tue Jun 18, 2019 11:06 pm

» 8 Finance companaies to be closed very soon
by samaritan Tue Jun 18, 2019 8:52 pm

» Copreus (Pvt) Ltd - Need some Information
by Copreus Tue Jun 18, 2019 12:44 pm

» BALA can come down to 9/-
by Teller Tue Jun 18, 2019 12:27 am

» MARKET UP......BUT BFL....GRAN....TAFL......
by Trader321 Mon Jun 17, 2019 4:31 pm

» TAFL - GOLDEN EGG IN POULTRY SECTOR
by Trader321 Mon Jun 17, 2019 4:29 pm

» MGT.N0000 & TJL.N0000 keep eye.
by Trader321 Mon Jun 17, 2019 3:58 pm

» TAFL.N000 / GRAN.N0000
by Trader321 Mon Jun 17, 2019 3:57 pm

» Market will test 4700
by karuna2 Mon Jun 17, 2019 1:08 pm

» Loss-making stockbrokers may not last six months
by Miss-Sangeetha Mon Jun 17, 2019 12:51 pm

» Those who are having SUGA And HDEV (Hotel Developers)coming week you all can excpect Good News to come
by Capton KIng Cool Mon Jun 17, 2019 12:25 pm


You are not connected. Please login or register

Sri Lanka Equity Forum » Stock Market Talk » Compliance with public float rule a problem for many companies

Compliance with public float rule a problem for many companies

Go down  Message [Page 1 of 1]

Eugine Fernando


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
August 26, 2017, 6:00 pm

About 70 companies of 220 listed on the main board of the Colombo Stock Exchange (CSE) have been unable to comply with the 20% minimum flat requirement that has been long pushed by both the CSE and the Securities and Exchange Commission.

The position is much better on the second or Diri Savi board where 17 of 74 listings have been able to comply with the less stringent requirement.

Stock analysts said that a few companies, including some old established firms like John Keells PLC (not JKH), the commodity broking and warehousing subsidiary of JKH, have overcome the problem by migrating to the second board. Others are considering a similar move.

In recent weeks the CSE website has been publishing dozens of disclosures from listed companies stating that they are non-compliant and saying what they are trying to do about it.

These range from a filing by Sri Lanka Telecom PLC, one of the biggest market capitalized companies quoted on the CSE, which despite having as many as 12,248 public shareholders on their share register is non-compliant with a public float of just 5.52%.

SLT has said that they are in the process of evaluating options that are available to them to comply with the requirement and would communicate steps to be adopted "in due course."

Commercial Bank of Ceylon PLC whose subsidiary Commercial Development PLC is non-compliant with the public float rule has attempted to sell down its over 90% stake in the subsidiary. But it had only succeeded in disposing just 183,483 shares in July, reducing its stake in Commercial Development from 94.55% to 93.01% due adverse market conditions.

Commercial Development said in a recent filing that their parent will continue to try to sell down to comply with the rules.

The holding company of Singer Sri Lanka recently reduced its controlling stake while retaining comfortable control in order to help make the Singer share more liquid. There was also a sub-division of shares dramatically increasing the number of shares in issue.

Lankem Ceylon PLC with 2,003 public shareholders owning 17.3 percent of the company said in a recent filing that they hoped the rights issue they had recently announced would help overcome the minimum float difficulty.

Gestetner PLC, where 701 public shareholders own 15.57% has said it was exploring "the best course of action" to rectify the current position while the management of Aitken Spence Plantation Management PLC with 103 public shareholders owning 11.78% of the company is working on a rectification plan to present to its board.

"While there is an effort to get the public float issue sorted out as best as possible, neither the SEC nor the CSE is waving a big stick threatening penalties for non-compliance," an analyst said.

"Given that both the CSE as well as the regulator are keen to increase the number of listing, and they are slow in coming, they wouldn’t want already quoted entities to be forced de-list over this matter. That is why several extensions or the original deadline have been granted."

CSE CEO Rajeeva Bandaranaike said that the position improved considerably from where they were some time ago. But there was yet more distance to cover.

Hoo Hooo   What a CSE & SEC We had,   how they ruin the  Srilankan  stock market with this kind of rules., why can`t they regulate rules to control share movement of AINV, PCP,PCH,  CIFL & PCHH ext......................... and also the shares witch were suspended due to the company fault and the share holders were effected Sleep Sleep Sleep

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum