28th March 2011, www.lankabusinessonline.com
Sri Lanka's securities regulator has called for proposals from international and domestic qualified investors to design, build and own an exchange which can trade "multi asset" classes in spot and forward markets.
Sri Lanka's Securities and Exchange Commission has called for expressions of interest from parties that now operate at least two licensed exchanges and have net assets of more than 100 million US dollars.
Prospective investors have to team up with a Sri Lankan party and submit proposals by April 29.
"The exchange should facilitate spot and futures trading of multi-asset classes and needs to incorporated as a demutualized limited liability corporate entity," the SEC said in a newspaper advertisement.
"It should adhere to global best practices and standards, and accommodate all necessary components of a commodities exchange including mechanisms for clearing and settlements of the instruments traded."
Sri Lanka already has an equities exchange which also has some debt listed. The advertisement for the new exchange for multi-asset classes did not specifically exclude either equity or debt.
The existing stock exchange is member-owned.
But the new exchange has to be set up as a limited company owned by shareholders.