The Colombo Stock Exchange (CSE) on Thursday informed the stockbroker licence applicants of the status – whether they have been approved or not -- of their trading member licences, CSE officials said.
“We have informed them of the status of their applications this week,” Surekha Sellahewa, CEO CSE told the Business Times, without giving details. Also declining to say who the applicants are, she said that the successful candidates will have to incorporate the stockbrokering firms and then apply for CSE membership, abter which the Securities and Exchange Commission will grant them the licence.
Share market sources said a Mackwoods Group company, Commercial Bank, India Infolines, LOLC and Bank of Ceylon are believed to be some of the firms who applied for the licences with only a few being successful in the CSE’s selection process.
Last June, the CSE advertised for broker licences and said that successful applicants would have to open at least one branch office outside Colombo within the first year and a further two branches within the second year of operation. The licenses will cost Rs 25 million plus taxes per license, with a minimum startup capital of Rs 50 million. Currently there are 21 brokering firms dealing in debt and equity at the Colombo bourse.