The Colombo Stock Exchange (CSE) has facilities for the secondary trading of Corporate Debt Securities. When a trade carried out through the Automated Trading System (ATS) of the CSE for a debt security, the crediting of Debt Securities to the buyer’s Client Account takes place upon the receipt of confirmation of settlement of funds from the nominated settlement bank.
For debt securities investors have a choice of doing trades on two separate settlement boards.
- TOM Board – Settlement on T+1(Early Settlement)
- SPOT Board – Settlement on T+2(Normal Settlement)
Accordingly, cash settlement can be done on T+1 or T+2 and Debt securities settlement is on DVP (Delivery versus Payment) basis.