CSE Chairman Vajira Kulatilaka and CEO Rajeeva Bandaranaike launching the new e-connect system along with other senior officials of the Colombo Stock Exchange and Central Depository System Ltd at the CSE auditorium. Pic by Indraratne Balasuriya
By Shabiya Ali Ahlam
Sri Lanka’s capital market operator yesterday got a step closer in connecting the financial system to the bourse and significantly improving investor convenience with the launch of CDS e-connect. CDS e-connect is a secure electronic business portal that offers an array of online services to account holders of Central Depository System Ltd, a fully owned subsidiary of the Colombo Stock Exchange (CSE).
CDS e - connect would allow account holders the ability to access resources including transactional details, portfolio reports and past monthly statements in real time.
For institutions such as margin providers, the portal would allow in managing multiple user accounts through a single user ID. The technology for e-connect service is provided by Millennium Information Technologies (MIT).
With the introduction of e-connect, CDS joins depositories from around the world in offering electronic services to account holders.
According to CSE Chairman (CEO) Vajira Kulatilaka the role of the market operator is not only to provide investment opportunities and instruments, but also improve the convenience factor for investors.
“This shows how concerned CSE is on the convenience factor.Our final objective would be to be able to connect all financial systems to the stock exchange. That is where we are leaning towards. That will make it much easier for foreign investors.
“Our bigger target is to connect ATMs and other avenues to facilitate investments. This is the first step only. You can progress more and more and that is how we can get majority of the people into the stock market,” said Kulatilaka.
Opining the new instruments alone are not enough to improve market participation, he stressed that greater focus would be on improving convenience.
“With convenience any retail investor can come to the market easily. They would be encouraged to invest. Very soon there will be more opportunities for participation and that is what makes the market to take off,” elaborated Kulatilaka.
The launch of e-connect comes along with a number of value added services and improvement to technology offered by CDS. This includes the launch of SMS alerts and e-statements.
According to the CSE, such services are introduced with the objective of encouraging investors to taken an active role in the management of their investment portfolios.