Colombo (LNW): The Colombo Stock Exchange (CSE) has been hosting and plans to continue a series of virtual workshops on Regulated Short Selling (RSS) and Stock Borrowing and Lending (SBL) to educate various groups.
These sessions are available in Sinhala, English, and Tamil, catering to internal stakeholders, current and potential investors, and the wider public.
SBL facilitates the lending and borrowing of shares for set durations, allowing participants to benefit from market trends and prevailing interest rates.
However, only certain securities, determined by the CSE and Central Depository System (CDS), will be eligible for SBL transactions, with CDS reviewing this eligibility quarterly.
For RSS, only shares from select listed companies that meet liquidity criteria are eligible, and they can only be executed through the Automated Trading System (ATS) via a Trading Participant. Client orders submitted online are excluded from RSS.
These efforts are geared towards enhancing market efficiency, liquidity, and aligning the CSE with international norms.
The upcoming workshop on these topics is scheduled for October 17, 2023, with registration available through the CSE website and its social media channels.