The guidance note is intended at offering stakeholders a clear understanding on the level and manner of compliance expected and areas that will be looked into at the point of submitting a Listing application and when submitting a Sponsor application.
Two-Year operating History to be demonstrated by Potential Empower Board Issuers
Businesses carried out in terms of a formalized arrangement acceptable to the CSE as a sole proprietorship/partnership prior to incorporating the entity would be considered, provided that the applicant entity submits a duly certified copy of this formalized arrangement.
Preparation of Financial Statements if the company is a Parent Entity
In the event that the company seeking a listing on the Empower Board of the CSE is a Parent Entity, such entity is required to prepare its Financial Statements in accordance with the full Sri Lanka Accounting Standards (SLFRSs).
Eligibility to be an Empower Board Sponsor
A Sponsor Firm is required to have at least one staff member with a minimum of five years’ experience in Investment Banking or Corporate Finance out of which one year shall be in handling listing applications of Issuers or capital raising services (Where the Sponsor is an individual, the concept of capital raising services would not be applicable).
The guidance note offers direction to Potential Sponsor Firms on these requirements, highlighting areas of importance.
Independent role to be played by Empower Board Sponsors
A Sponsor Firm which will offer the company pre and post listing support is required to perform its duties independently with no conflict of interest with the Entities it sponsors.
Given this requirement, guidance has been offered to Private Equity/Venture Capital firms, Managers to a listing and Audit Firms, who wish to act in the capacity of a Sponsor.
The comprehensive guidance note issued by the CSE can be accessed via www.cse.lk
