SEC issues directive on adoption of Code of Best Practices on Related Party deals
Friday, 13 December 2013 00:01
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The Securities and Exchange Commission of Sri Lanka (SEC) at its 326th meeting held on 28 November 2013, decided to adopt the Code of Best Practices on Related Party Transactions attached hereto on identified timelines and terms of adoption as specified hereunder.
SEC directed the Colombo Stock Exchange to adopt the Code of Best Practices on Related Party Transactions subject to the terms of adoption as specified in the following manner;
All Public Listed Companies are required to adopt the code with effect from 1 January 2014 on a voluntary basis for an initial period of two years from the effective date.
Provided that where any public listed company decides to adhere to the code during the initial period of two years from the effective date, such public listed company shall be exempted from complying with the disclosure requirements stipulated in Rule 7.6 (xvi) and item 29 of Appendix 8A of the Listing Rules of the Colombo Stock Exchange in respect of related party transactions. Any public listed company that does not adopt the code on a voluntary basis during the initial period of two years shall continue to comply with Rule 7.6 (xvi) and item 29 of Appendix 8A of the Listing Rules of the Colombo Stock Exchange in respect of related party transactions.
All public listed companies shall adopt the code mandatorily with effect from 1 January 2016.
The Rule 7.6 (xvi) and item 29 in Appendix 8A of the Listing Rules of the Colombo Stock Exchange shall be repealed on 1 January 2016.
The Colombo Stock Exchange is further directed to amend the Listing Rules of the Colombo Stock Exchange to adopt the code with effect from 1 January 2014 on the aforementioned terms of adoption.
