Sri Lankans get the facility to open accounts with Stock brokers instantly

Sri Lankans get the facility to open accounts with Stock brokers instantly

26 February 2020 11:42 am

Sri Lankans have now been given an opportunity to open a securities account instantly with their Stock broker under a new decentralization programme.

It will be implemented by the Central Depository Systems (CDS) eliminating the need to forward application forms and connected documents to CDS and wait for the CDS to open the account and confirm to the stock Broker and for the stock broker to notify the account holder.

This empowerment would grant Stock Brokers a greater level of flexibility to service investors more efficiently and in a timely manner, CSE sources said.

 The CDS recently upgraded its systems to enable stock brokers to create CDS accounts on behalf of their clients, which enables the investor to trade immediately.

Stock Brokers have also been given the ability to carry out Broker to Broker portfolio transfers without the intervention of the CDS thus providing convenience of a faster service to their clients.

A CDS account is a pivotal part of trading securities at CSE and new investors are required to open a CDS account before commencing trading.

The new process will empower Stock Broker firms to promptly respond to investor requests and work more closely with the investor at the point of PUBLIC opening a CDS account.

This will also streamline the KYC process and would fast track registering new investors and offer them the ability to save time and maximize on investment opportunities.

The initiative will reduce the time taken to carry out these functions and enable a faster and smoother service delivery. Stock Broker firms have played a lead role in ensuring a smooth transition to this globally accepted practice which is set to uplift industry standards and place them in par with peers globally.

Depositories are expanding on their traditional role, bolstering their service offering and decentralizing functions to offer better value to its stakeholders which were noted in a survey carried out by CDS amongst members of the Asia-Pacific Central Securities Depository Group (ACG).