SEC eases minimum public holding rules to boost liquidity

Securities and Exchange Commission (SEC) has approved amendments to the Colombo Stock Exchange (CSE) listing rules to provide greater flexibility regarding the minimum public holding (MPH) requirement for companies listing through the introduction method, the regulator said.

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The flexibility is given to boost the share liquidity in the market under its one of 12 key strategic initiatives, the SEC said.

"The amendments reflect a joint effort by the SEC and CSE, underscoring strong collaboration between the regulator and the Exchange to address evolving market needs while maintaining market integrity, transparency, and investor protection," the SEC said in a statement.

The new amendment will allow entities seeking listing by way of an Introduction on the Main Board or Diri Savi Board without minimum public holding at the time of submitting the initial listing application.