The recently approved amendments to the listing rules of the Colombo Stock Exchange (CSE) by the Securities and Exchange Commission of Sri Lanka (SEC) will enable shareholders to receive dividends declared by Listed companies much faster. These reforms are a part of broader changes considered and implemented by the SEC and CSE to facilitate the digitization of capital market operations.
The amended rules have shortened the time period for the payment of dividends by Listed companies from 7 market days to 2 market days from and excluding the XD date in instances where the shareholder has provided accurate bank account details to the Central Depository Systems (Pvt) Limited (CDS) or to the company. In such instances, it has been made mandatory to all Listed companies to directly credit the respective bank accounts within the time period.
The XD date is the day immediately following the date on which the dividend payment resolution is passed at the shareholders meeting in instances where the approval of shareholders is required and in instances where shareholder approval is not required, the XD date is the 7th market day excluding the date of the dividend announcement.
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