📈 CSE Mandates Strict New Fund Utilization Disclosure Framework

• Regulatory Action: The Colombo Stock Exchange (CSE) issued Circular No. 06/2026, introducing an immediate revised disclosure framework under Rules 7.6(xiii) and Appendix 7A, Part (a), Item 3 to enforce strict oversight on public fund deployment. • Key Disclosure Mandates: Listed entities must detail fund utilization in Annual Reports and Interim Financial Statements until proceeds from IPOs or further issuances are fully used. Disclosures must break down spending by: - Original vs. actual allocation (absolute and % of total) - Utilization percentage against targets and proposed dates - Current location of unutilized funds (bank deposits, related party loans, or other investments) • Related Party & Investment Rules: If unutilized proceeds go to related entities, companies must disclose the entity name, relationship, objective, and Board approval date. Details on counterparties and investment instruments are mandatory for other placements. • Board Compliance & Deviations: Companies must submit a certified Board Resolution extract confirming funds were used strictly per the Prospectus objectives. Any deviation requires immediate market disclosure, detailed explanations, and Board approval dates.