How do I buy/sell shares?
 
On the Primary market -
For a new issue (IPO) shares can be bought directly from the company by filling a share application form.
 
On the Secondary market -
Shares can be bought or sold by investors on the secondary market after the initial issue. To do this investors need to find a stockbroker, fill and hand in the relevant forms to the stockbroker to open a CDS account. Once you are given a CDS number, you can contact the stockbroker to buy /sell shares via the phone, internet, fax or a visit.
 
 
What is the transaction cost?
Transactions up to Rs 50 Mn have a cost breakdown as follows:
Brokerage fees -  0.640%
CSE fees -  0.084%
CDS fees -  0.024%
SEC cess -  0.072%
Government cess -  0.300%
   
Total -  1.120%
 
 
What are the normal trading hours?
Trading commences at 0930h daily and the market closes at 1430h. Orders can be placed pre- market from 0900h to 0930h.
 
 
What types of shares can I buy?
 

Ordinary Shares (N)
• Gives ownership of the company.
• Gives a right to vote at the Annual General Meeting.
• Entitled to dividends.

Non-Voting Ordinary Shares (X)
• Gives ownership of the company.
• Gives no voting rights.
• Entitled to dividends.

Warrants (W)
• A warrant permits the holder to trade the warrant and on the expiry date purchase the share at the predetermined price.

 
 
What is the Payment Cycle?

Buyers must effect payment on the third market day (T+3) unless they have an arrangement for a credit facility with the broking company .

Sellers should receive payment by the third working day (T+3) unless expressly permitted by the seller in writing to do otherwise. If payment has not been made by the stockbroker firm to the seller on the settlement date without a written request of the client, the seller will be entitled to interest of 0.1% per day on the outstanding amount.
 
 
What is the function of the CDS?
The Central Depository System (CDS) provides depository and clearing facilities for securities traded on the Colombo Stock Exchange. It is a fully owned subsidiary of the Colombo Stock Exchange.
 
 
Who is eligible to trade on the Colombo Stock Exchange?
Sri Lankans and foreign nationals over 18 years of age.