The Securities & Exchange Commission (SEC) has decided to relax the regulations on the Minimum Public Float in listed companies in Sri Lanka.
According to the new SEC regulations, there would be no necessity for a minimum public float for public companies listed under the main board and with a Rs. 10 billion adjusted threshold from the market capitalization.
Accordingly, companies maintaining a Rs. 7.5 billion public float of the market capitalization should maintain a public float of 5%, companies maintaining a Rs. 2.5 billion public float 10% and below these limits 20% public float.
The minimum number of shareholder in a company listed on the main board has been stipulated at 500.
Apart from them, public listed companies under the Diri Saviya board with a public float of Rs. 01 billion market capitalization should maintain a minimum 7.5% public float and below this limit a public float of minimum 10%. The minimum number of shareholder in a company listed under the Diri Saviya board has been stipulated at 200.
These policies would be effective 01 January 2017 and the companies failing to fulfill them would be provided with a grace period of six months, said the CSE.
