FAQ
FAQ
"Answers to common questions asked by investors"

A stock exchange is a liquid, open market for buying and selling shares, debentures, etc .of publicly owned companies also known as Public Limited Companies (PLCs).

CSE is the organization responsible for the operation of the stock market in Sri Lanka. The CSE is a company limited by guarantee duly established in Sri Lanka and licensed by the Securities and Exchange Commission of Sri Lanka (SEC).

A listed company is one that raises funds to support its growth by selling ownership interests (shares) to the investing public. Those shares need to be listed and traded on that country's stock exchange/s. Also these companies need to be in compliance with an Exchange's set of listing rules.

There are 294 such companies representing 20 business sectors listed at the CSE as at 30th June 2014.

  • Ordinary Shares (Voting and Non - Voting)
  • Preference Shares
  • Rights and Bonus Issues
  • Corporate Debentures
  • Government Securities
  • Warrants
  • Closed End Funds

There are two ways to purchase shares:

  • From a new issue of shares (Primary Market) via an IPO (Initial Public Offering) or Private Placement (shares issued to selected investors) In the primary market, the security is purchased directly from the issuer (company).
  • On the Secondary Market through a stock broker such as NDBS.

  • For both options, you would need to open a CDS (Central Depository System) account if you intend to trade in shares.

Your CDS account enables you to participate in paperless trading on the Colombo Stock Exchange. Your account will be maintained in double-entry book-keeping format and will be updated in real time as your participant lodges your transactions at CDS.

To open a Securities Account in the CDS you should complete an Account Opening form, which can be obtained from us.

There are no fees charged for opening a CDS account.

You can deposit shares, debentures, warrants, government securities and units of closed end funds.

The CSE is open from Monday to Friday every week of the year, except on holidays. Please check the CSE website to know about holidays.

Times :

  • Pre-open: 9.00 am-9.30 am
  • Open auction: 9.30 am
  • Normal Trading: 9.30 am -14.30 pm
  • Closing: 14.30 pm
Transactions up to Rs. 50 Million - 1.02%
Brokerage Fees 0.640%
CSE Fees 0.084%
CDS Fees 0.024%
SEC Cess 0.072%
Share Transaction Levy 0.200%
Transactions over Rs. 50 Million -Negotiated
Minimum brokerage (floor) 0.200%
CSE Fees 0.0525%
CDS Fees 0.0150%
SEC Fees 0.0450%
Share Transaction Levy 0.200%

Less than 100 shares are considered an odd lot.

If the client is a first time investor, then the credit limit will be restricted to the amount that is deposited in cash beforehand. If the client already holds a portfolio, then the credit limit is usually equal to around 30% of the portfolio.

It is a web based application. You can navigate to the page through your Internet browser and type in your Username and Password. (No additional software is needed in order to use this application)

We believe strongly in confidentiality and we guarantee our clients total confidentially in terms of their portfolios & transactions.

We at NDB Securities make every effort to keep your account and personal information secure. Using updated security, technology and fraud prevention measures; we strive to provide a strong defense against electronic scams and fraud.

Should this happen, promptly contact us and we will assist you.

You may deposit shares held by you in script form (certificate form) into your CDS account. Hand the share certificate with a duly completed Sold Transfer form to your participant and shares will be lodged in your account by the CDS immediately upon receipt of the documents.

To withdraw securities from the CDS you should submit a duly completed Bought Transfer form and a Withdrawal form to the CDS through your participants. The securities will be withdrawn from your CDS account and you will receive a Securities Certificate within seven market days.

You can transfer your portfolio in full or in part to another participant/s, provided all outstanding payment has been settled.

Securities can be maintained by investors in script form or scripless form. However it is mandatory that securities which are in script forms are lodged with the CDS prior to sale of securities. If you have purchased securities you will not receive script, but instead will receive a written confirmation of the trade from your participant. This written confirmation is the confirmation of the transaction and serves as the invoice for payment. You could also have share allocations obtained through IPO’s, Rights, Bonus or any other issue directly deposited into your CDS account or alternatively, you could request scrip. However, the use of the CDS account for direct upload purposes ensures speed, security and efficiency. All securities traded on the CSE are cleared by the CDS. Securities accounts are updated in real-time as a transaction is completed. All the securities are open for purchase.

A single tier settlement cycle of trade day +3 (T+3) is adopted to settle the transactions.

  • The buyer must have realized funds by the 3rd day (T+3)
  • The seller will receive payment for shares sold by the 3rd trading day after the sale (T+3)
 
 
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