Securities Investment Accounts (SIA) Replace SIERA & TIERA Accounts - For Investment in Sri Lankan Equity, Debt and Unit Trusts

SIA is a Sri Lankan Rupee (LKR) Account which eligible investors could open to invest in Government Securities (Treasury Bills and Treasury Bonds), Equity Capital of Companies incorporated in Sri Lanka and Units of Unit Trusts in Sri Lanka.

NOTE: Following LKR Accounts which were already opened for investment purposes will be re-named Securities Investment Accounts (SIA):

• Share Investment External Rupee Account (SIERA)
• Treasury Bond Investment External Rupee Account (TIERA 1)
• Treasury Bills Investment External Rupee Account (TIERA 2)
• Treasury Bonds and Bills Investment External Rupee Account – Deshabhimani for Sri Lankan Diaspora and Migrant Workers (TIERA-D)

Features and Benefits of Securities Investment Accounts (SIA)

• Remittances to the SIA would automatically be converted at the prevailing exchange rate to Sri Lankan Rupees (LKR) for investment.
• Not subjected to further taxation when investing in Government Securities, since a withholding tax of 10 percent of interest is charged at source.
• No exchange control regulations to repatriate original investment and any income realized (interest, maturity proceeds, sales proceeds of shares, dividend payments, liquidation proceeds of companies and proceeds of redemption of units) in any designated foreign currency to your overseas account.
• Ability to forward book foreign exchange to mitigate potential exchange rate risk.
• Transfer of funds between SIA of the same account holder is permitted.
• SIA maybe held jointly by eligible investors.
• Eligible investors who invest in Treasury Bonds/Treasure Bills are permitted to enter into Repurchase (Repo) and Reverse Repurchase (Reverse Repo) transactions using Treasury Bonds/Treasure Bills purchased under this scheme as collateral.
Who Can Open a SIA Account?
• Foreign institutional investors such as country funds, regional funds or mutual funds.
• Corporate bodies incorporated outside Sri Lanka.
• Citizens of foreign states, whether resident in Sri Lanka or outside Sri Lanka
• Non-resident Sri Lankans.
• Sri Lankan professionals living in Sri Lanka who receive inward remittances.
• Dual citizens who receive inward remittances.

What Deposits are Permitted to a SIA Account?

• Inward remittances received from abroad through banking channels.
• Transfer of funds from NRFC/FCBU/RNNFC accounts of the same account holder.
• Sale proceeds realised out of sale/transfer/maturity proceeds of Treasury Bonds/Treasury Bills or any income realised by way of capital gain thereof.
• Sale proceeds of share supported by documentary evidence (Broker's Contract Notes and evidence of tax payments, etc) and dividends.
• Dividend income on units of unit trusts net of tax supported by documentary evidence.
• Proceeds on redemption of units net of tax supported by documentary evidence.
• Commissions relating to share transactions with supporting evidence.
• Liquidations proceeds of companies.
• Interest received on Treasury Bonds held by the account holder.
• All other credits permitted on shares in terms of operating instructions No.06/02/12/2001 dated 06/11/2001 in respect of stock borrowings and lending (SBL) transactions.
• Local expenses incurred by account holder.
• Inward remittances for investments in debentures.
• Proceeds realized out of sale or transfer or maturity of debentures.
• Interest accrued on debentures.

What Withdrawals Can be Made to a SIA Account?

• Payments for investments in shares/units of unit trusts/Treasury Bonds/Treasury Bills.
• Outward remittances of sale/redemption/maturity/liquidation proceeds of shares/units/Treasury Bonds/Treasury Bills and dividends of shares or units.
• Payments to brokers, primary dealers, lead managers, management company of a unit trust and bank charges.
• Local expense payments in LKR of the account holder.
• Transfer of funds to the accounts maintained by the account holder at FCBU.
• All debits permitted in the operating instructions No.06/02/12/2001 dated 06/11/2001 in respect of SBL transactions on shares.
• Payments for investments in debentures.

Documents Required to Open a SIA Account?

For Individual Investors:
• Relevant mandate (duly completed).
• Photocopy of passport (relevant pages where photograph and personal details are available).
• Letter of introduction from your Banker overseas (required only from citizens of foreign states).
• Declaration from the customer.
• Central Depository System (CDS) Account Opening Form duly completed.

For Corporate Investors:
• A certified copy of the Certificate of Incorporation.
• Copy of Memorandum (as appropriate) and Articles of Association duly certified by the Chairman and Secretary.
• Certified extract of Resolution of the Board of Directors as stated in the Account Opening Form.
• Certified list of the Directors issued by the Registrar of Companies of the country where the Company is incorporated.
• Specimen signature cards of officials who are authorized to operate the account and copies of their passports duly witnessed by the Chairman/Secretary of the Company.
• Letter of Introduction from Institutions Banker overseas.
• Central Depository System (CDS) Account Opening Form duly completed.

See Also:
• How to Invest in Sri Lanka Government Securities - Treasury Bills and Bonds
• How to Invest in Sri Lanka Equity Market - Colombo Stock Exchange, the Best Performing Capital Market of the World

Sri Lanka Stocks Pass 4200 Points. Looks Well on the Way to Reach 4,300 in the Midterm

03rd May 2010, www.lankabusinessonline.com

Sri Lankan stocks passed 4,200 points Monday as price gains on selected high values shares pushed the market up, while Janashakthi Insurance and Commercial Bank trades helped turnover pass 3.0 billion rupees, brokers said.

The All Share Price Index (ASPI) closed at 4,219.22, up 30.34 points while the Milanka index of more liquid shares rose 0.84 percent (39.80 points) to close at 4,752.23.

Turnover was 3.3 billion rupees, according to stock exchange provisional figures.

"The gains made early in the day settled to a realistic level towards end of trading," Thakshila Hulangamuwa, vice president at stock brokering house Asha Phillip Securities said.

Brokers said this was the first instance the ASPI had passed the 4,200 point barrier and it looked well on the way to reaching 4,300 points in the midterm.

Carsons Cumberbatch closed at 585.50 rupees, up 16.75, and The Bukit Darah closed at 4,812.50 rupees, up 438.75. Both firms have overseas palm oil interests.

Finlays Colombo closed at 240.00 rupees, up 13.25.

Large deals on Commercial Bank of Ceylon and Janashakthi Insurance pushed turnover past a 3.0 billion rupees, brokers said.

Commercial Bank closed at 239.75 rupees, up 25 cents with 5.0 million shares traded, Hatton National Bank closed at 242.50 rupees, up 8.00, Sampath Bank closed at 290.00 rupees, down 25 cents and Seylan Bank closed at 52.75 rupees, up 1.75.

Nearly 24 million shares of Janshakthi Insurance changed hands Monday. It closed flat at 14.25, brokers said.

Conglomerates Aitken Spence closed at 1,450.00 rupees, down 25 cents, Hayleys closed at 285.00 rupees, up 4.00, Hemas Holdings closed at 133.00 rupees, up 50 cents and John Keells Holdings closed at 191.00 rupees, up 5.75.

Sri Lanka Telecom closed at 36.50 rupees, down 50 cents, and Dialog Telekom closed flat at 7.25.

How to Invest in Sri Lanka Equity Market - Colombo Stock Exchange, the Best Performing Capital Market of the World

HOW TO INVEST IN COLOMBO STOCK EXCHANGE (CSE)
The Colombo Stock Exchange (CSE) became the best performing capital market in the world recording a growth of 111.14 percent. All Share Price Index (ASPI) of the CSE and Milanka Price Index (MPI) both have crossed 7,000 milestone creating history. (2nd October 2010).

Institutions incorporated outside Sri Lanka and individuals resident outside Sri Lanka inclusive of Sri Lankan residents out side Sri Lanka are permitted to buy and/or sell shares in a listed company of Colombo Stock Exchange up to 100% of the issued capital of such company.

PROCEDURE FOR INVESTMENT AND REPATRIATION OF PROCEEDS FOR NON RESIDENTS
Investment in shares in Sri Lanka and repatriation of proceeds should take place through Share Investment External Rupee Accounts (SIERA) opened with licensed commercial banks, which are appointed as Authorized Dealers in foreign exchange under the Exchange Control Act.

Individuals resident outside Sri Lanka (inclusive of Sri Lankans resident outside Sri Lanka), approved regional funds, approved country funds as well as corporate bodies incorporated outside Sri Lanka are permitted to open SIERA accounts. (Note: Securities Investment Accounts (SIA) replace SIERA).

Read more...

GETTING STARTED - COLOMBO STOCK EXCHANGE (CSE)
• How do you purchase shares
• Types of securities traded at the CSE
• What is Central Depository Systems (Pvt) Ltd?
• How do I open a CDS account?
• What is the purpose of my CDS account?
• What is the reason for holding my securities in scrip-less form?
• Who are stockbrokers?
• Can I use a different broker from the one I have been using?
• How Safe Is CDS?
• Read more...

HOW TO FIND A STOCK BROKER
• Who is a Stockbroker?
• What services do they provide?
• What are their fees?
• Members of CSE (List of Stock Brokers)
• Read more...

INVESTING IN SHARES
• What are the types of shares?
• Benefits of Investing in Equity
• How do you buy/ sell shares?
• Read more...

TRADING SYSTEMS
• The Automated Trading System (ATS)
• The Debt Securities Trading System (DEX)
• The Boards
• Read more...

TRADING SESSIONS
The Exchange is open for continuous trading from Monday to Friday from 9.30 a.m. to 2.30 p.m.

Secondary trading of corporate and government debt securities through the DEX takes place from 9.30a.m. to 12.30p.m.
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TRANSACTION COSTS
• Transaction cost applicable for equity & debt securities
• Read more...

TRADING PROCESS
• Diagram

CSE - EQUITY MARKET
The CSE offers a variety of tools to help market professionals and investors monitor trading activity and keep the pulse of the market.
• Daily market summary
• Share price list
• Market Indices
• Total Return Indices
• Sector-wies market summaries
• Market capitalisation of listed companies
• Trading statistics
• Reserch papers
• Read more...

Stock Markety Report - Daily
Stock Markety Report - Weekly

MyCSE
MyCSE offers additional features such as live market information for the stocks in your portfolio, etc.
Read more...

CSE - DEBT MARKET
The Colombo Stock Exchange (CSE) has facilities for the secondary trading of Corporate and Government Securities. A separate trading system (DEX) and a separate clearing and settlement mechanism is in place for debt securities. Presently 69 corporate debt securities are listed on the CSE. All Government Debt is tradable through the DEX system.
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CSE - DERIVATIVES MARKET
• Read more...

ADDITIONAL INFORMATION• Investnow.lk - Best place to discuss matters concerning the Colombo Stock Exchange
• Colombo Stock Exchange on Wikipedia
• Securities & Exchange Commission of Sri Lanka
• The Stock Market in Sri Lanka: An Investment Opportunity Outlook for 2009 and Beyond
• Stocks in Sri Lanka are "the only equities" Jim Rogers would "consider buying at the moment" - Bloomberg newswire report
• “If I weren’t here, I’d be on a plane to Sri Lanka" - Jim Rogers on wonderful opportunities in Sri Lanka
• How to Pick Winning Stocks
• Share Valuation - Risks & Returns

Related Info :
• Securities Investment Accounts (SIA) Replace SIERA & TIERA Accounts - For Investment in Sri Lankan Equity, Debt and Unit Trusts
• Sri Lanka Offers Special Visas to Investors, Professionals & Senior Citizens

NAMAL Acuity Value Fund Listed on the CSE, Sri Lanka

10th October 2009, www.island.lk, By Devan Daniel

The Units of the NAMAL Acuity Value Fund (NAVF) has been listed from 12th October 2009 and classified under the Closed end Fund Sector at the Colombo Stock Exchange. "The NAVF is a collective investment scheme designed for investors seeking capital appreciation on their investment" A press release from National Asset Management Limited (NAMAL), the managers of the Fund stated.

In Sri Lanka, it is the first occasion that a unit of a fund is being listed on the Stock Exchange. The investors can acquire the units through the member firms of the Colombo Stock Exchange to become a unit holder of the Fund. The investors will have the benefit of lower trading costs when buying or selling the units compared to the prevailing trading cost associated with the shares listed on the Stock Exchange.

NAMAL being the pioneer licensed Unit Trust Manager with 18 years of investment management experience launched this Fund to the public to enable them to participate in the growth prospects of the equities listed on the Colombo Stock Exchange. The Fund retains the option to invest entirely in fixed income securities in order to preserve the invested capital and generate distributable income whilst reducing the risk to the Fund, the release further stated.

Related Info :

• NAMAL Acuity Value Fund Declares First Dividends