Vajira Wijegunawardene, the Director of the capital market development of the Securities Exchange Commission says the system will be introduced to all types of transactions taking place in the capital market.
Accordingly, it will cover IPO payments, dividend payments for investors at the CSE and also share market transactions.
Wijegunawardena revealed “We are looking at the entire clearing and settlement mechanism of the capital market”
As of now, most of the transactions at the CSE are conducted via cheques.
To engage in SLIPS transaction, what the investor requires is only have a bank account.
Wijegunawardena said introducing this system will help reduce transaction time in the capital market.
“At present refunding of IPO cash takes about 10 days” added Wijegunawardena.
Currently the SEC is holding discussions with the industry and the idea is to make the electronic fund transferring system mandatory for all capital market transactions in the future.
Electronic Funds Transfer is movement of funds from one account to another without the corresponding piece of paper to authorize or prove that the transfer had occurred.
http://www.news360.lk/markets/stock-market/sri-lanka%E2%80%99s-capital-market-to-introduce-%E2%80%9Celectronic-funds-transfer
very good move............