CSE creates awareness on Regulated Short Selling through Stock Borrowing and Lending

Monday, 16 October 2023 01:45 - - {{hitsCtrl.values.hits}}

The Colombo Stock Exchange (CSE) conducted a series of virtual workshops and intends to continue more workshops on Regulated Short Selling (RSS) through Stock Borrowing and Lending (SBL), creating awareness on the two features to diverse groups of individuals.

The virtual workshops are being conducted in Sinhala, English and Tamil with the intention of reaching a larger audience. The target audience varies between internal parties, existing and potential investors, and other market participants, including the general public.

The sessions which were conducted to the existing and potential investors drew the attention of approximately 190 participants while Sinhala and Tamil sessions conducted for the general public attracted nearly 250 participants.

SBL connects lenders and borrowers of shares for a predetermined period, allowing them to capitalise on market trends as well as prevailing interest rates.

Only eligible securities specified by the CSE and Central Depository System (CDS) will be allowed for SBL transactions, and the eligibility of these securities will be reviewed by the CDS on a quarterly basis.

Further, only the shares of specific listed companies meeting the liquidity criteria will be eligible for RSS. RSS can only be carried out through the Automated Trading System (ATS), using the services of a Trading Participant. RSS will not be permitted for orders submitted by clients via online.

The initiative aims to promote market efficiency and enhance liquidity while improving the market microstructure of the CSE and aligning with international standards and practices.

The next virtual workshop on RSS and SBL will be held on 17 October (Tuesday), in English medium at 6 p.m. onwards and those who are interested could join the session by registering via the CSE website and social media channels. For more details, please visit the CSE website.