The Colombo Stock Exchange (CSE) has announced new measures to protect dormant Central Depository Systems (CDS) accounts that have remained inactive for three years or more.

Under the new framework, inactive CDS accounts will be gradually classified as “Non-Operative Client Accounts” and transactions will be restricted until the accounts are reactivated by the account holders.

The CSE said the move aims to reduce fraud risks associated with dormant accounts while protecting investors in line with CDS regulations.

The account suspension will not affect ownership rights, and investors will continue to receive dividends and other corporate benefits linked to their securities.

Account holders can reactivate their dormant accounts at any time through the CSE Mobile App or CDS website by providing updated Know Your Customer (KYC) information.

The CSE emphasized that the reactivation process has no deadline and the new measures are designed to strengthen security while ensuring investor protection.