Sri Lanka Securities and Exchange Commission removes price bands

Chairperson of the Securities and Exchange Commission (SEC) of Sri Lanka Ms. Indrani Sugathadasa has issued new orders that will be effective from today (20th September) to streamline the activities of the Colombo Stock Exchange (CSE).

The SEC removed the 10% price band imposed earlier on all listed securities with its new directives while the formula confirmed by the SEC for all securities on a daily roll over basis for the preceding review period of 5 market days will become applicable.

A 10% upward and downward price band based on previous day's closing price will become applicable for the securities captured by the formula and any price band imposed will remain effective for a period of 15 market days from the date of imposition.

The price bands will not be applied for first day trading on any securities, the parcels introduced on all or nothing basis, debentures, and crossings.

The Colombo Stock index reached a new high of 6,521.43 points today upon hearing the removal of price bands.

Price Bands will not apply to any security on 21st September based on the 5 day review period from 14th to 20th September with both days included, the CSE announced.