500-plus CDS accounts remain unopened for two months
More than 500 Central Depository Systems (CDS) accounts have not been opened by stockbrokers over the past two months, and the non-functioning Lanka Government Cloud has also aggravated this situation, adding to the backlog, top officials in the industry said.
“This has happened for the past two months. When the account holders are not of a particular asset size, certain stockbrokers take time to open their accounts,” an industry official said. Lanka Government Cloud (LGC) is now online after technical issues caused a disruption, the Information Communication Technology Agency of Sri Lanka (ICTA) announced on Tuesday. The CSE Mobile App enables end-to-end digital onboarding and account opening for prospective local retailers.
Stockbrokers said that now the backlog is being cleared since the LGC has been up.
They also noted that some accounts are not being opened because clients are not providing proper details. “When providing bank proof, it is essential to ensure that the bank account number, account type, currency, bank name, branch name, and customer name are all clearly visible. This clarity is crucial for the verification process and to avoid any potential issues. The traders don’t always adhere to the specified language requirements when generating responses, and maintain a formal tone throughout their communication,” a stockbroker said.
Some stockbrokers don’t cater to all clients. “Also, certain stockbrokers have different business models, and they do not cater to all clients, some accounts are not open,” a second stockbroker said.
The Colombo Stock Exchange is closely monitoring the account opening issue, officials added. They also said that month-on-month account openings have increased.
In June 3,989 CDS accounts were opened, while in July 4,118 accounts were opened. August saw 5,516 accounts being opened, and in September, new accounts reached 6,080.
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