Central Depository Systems (Pvt) Ltd (CDS), a subsidiary of the Colombo Stock Exchange (CSE), has announced a phased framework to classify dormant CDS accounts as non-operative, aimed at strengthening investor protection and reducing fraud risks.
Under the new framework, CDS accounts that have remained inactive for three years or more will be designated as “Non-Operative Client Accounts,” which will restrict transactions until the account holder completes a reactivation process.
The measure is being introduced in accordance with CDS Rule 3.10 and is intended solely to safeguard investors against fraud associated with long-dormant accounts.
The company clarified that the non-operative status will not affect ownership rights or entitlements. Account holders will continue to receive dividends and other corporate benefits, while securities held in the account will not be transferred, forfeited or cancelled.
Account holders can reactivate their accounts at any time through the CSE Mobile app using the “Non-Operative Reactivation” option or via the CDS website by submitting updated Know Your Customer (KYC) information.
The implementation will take place in four phases:
Phase 1: Accounts dormant for 15 years or more – Effective June 30, 2026
Phase 2: Accounts dormant for 10 to 15 years – Effective September 30, 2026
Phase 3: Accounts dormant for five to 10 years – Effective December 31, 2026
Phase 4: Accounts dormant for three to five years – Effective January 31, 2027
(Newswire)