FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka


Submit PostSubmit Post
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post



Latest topics

» Millennial Capital Youtube Channel
by MillennialC Today at 1:00 am

» Crypto , Digital Currency Trading , Forex
by MillennialC Today at 12:59 am

» DIPD/HAYC/HAYL
by Jana Yesterday at 11:11 pm

» PANASIAN POWER PLC (PAP.N0000)
by Jana Yesterday at 11:08 pm

» Has the CSE reached the peak actually in January?
by ONTHEMONEY Yesterday at 10:14 pm

» Blossom March
by Vishwanarth Yesterday at 9:14 pm

» ACL post share split trading and the future potential
by Jana Yesterday at 7:45 pm

» still I believe this
by stockback Yesterday at 6:59 pm

» Daily Foreign Transactions
by Pradeep90 Yesterday at 6:39 pm

» Good time to collect fundamentally sound shares
by madukp Yesterday at 6:30 pm

» GLAS will be winner with Super Gain.
by Eranga87 Yesterday at 6:13 pm

» TILE / LWL / RCL
by MaJa Yesterday at 6:07 pm

» TRUE VALUE OF LANKA ALUMINUM INDUSTRY (LALU)
by Susil Mendis Yesterday at 4:11 pm

» CENTRAL INDUSTRIES PLC (CIND.N0000)
by subash81 Yesterday at 2:15 pm

» RICH or TKYO
by subash81 Yesterday at 2:14 pm

» Inefficiency
by stockchaser Yesterday at 1:25 pm

» Sometimes you might find that you have lost all your money in the market by investing in the non profitable stocks in the market.
by pjrngroup Yesterday at 10:58 am

» පෙබරවාරි මාසේ කොළඹ කොටස් වලට මොකක්ද වුනේ - බැසුවාද ? බැස්සාද ?
by Wickyz Yesterday at 10:54 am

» NATIONS TRUST BANK PLC (NTB.N0000)
by Eranx Yesterday at 8:00 am

» TOKYO CEMENT COMPANY (LANKA) PLC
by arun.cse Mon Mar 01, 2021 1:14 pm

EXPERT CHRONICLE™

ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

CHRONICLE™ NEWS PRODUCTS

FINANCIAL CHRONICLE™

Views & Reviews, Analysis, Evaluations, Discussions, Gossip and Hot Tips relating to Sri Lankan companies listed on the Colombo Stock Exchange (CSE)
Contribute




DAILY CHRONICLE™

Latest news and articles published in Newspapers, Websites, Blogs and other online news sites relating to business and investments in Sri Lanka
Contribute



ECONOMIC CHRONICLE™

This is a section that provide news, views, analysis, predications relating to Political and Socio-Economic factors and how such activities affect the Stock Market and other economic activity of the Country.

Contribute




EXPERT CHRONICLE™

This is an exclusive section for Expert Articles which will help member to share knowledge through comments and responses of the members. All members are allowed to reply and make comments to these articles.

Contribute


Submit Post


CHRONICLE™ YouTube

Youtube Videos and other visual presentations relating Stock market and other investment advise submitted by members or other contributors.

Contribute


Submit Post


කොළඔ කොටස් වෙළඳපොළේ වංශකථාව
කොළඔ කොටස් වෙළඳපොළේ ලැයිස්තුගත සමාගම් කොටස් ගැන තොරතුරු¸විශ්ලේෂණ¸සාකච්ඡා¸ කටකතා¸රසකතා යන සියල්ල අපේම සිංහලෙන් කතා කළ හැකි ‘කතා මණ්ඩපය’

Contribute

Twitter Feeds
POPULAR COMPANIES
A

ABANS ELECTRICALS PLC

ACCESS ENGINEERING PLC Hot

ACL CABLES PLC

ACL PLASTICS PLC

ACME PRINTING & PACKAGING PLC

AGSTAR PLC

AITKEN SPENCE HOTEL HOLDINGS PLC

AITKEN SPENCE PLC

ANILANA HOTELS AND PROPERTIES PLC

ARPICO INSURANCE PLC

ASIA ASSET FINANCE PLC

ASIA CAPITAL PLC

B

BAIRAHA FARMS PLC

BALANGODA PLANTATIONS PLC

BIMPUTH FINANCE PLC

BLUE DIAMONDS JEWELLERY WORLDWIDE PLC

B P P L HOLDINGS PLC

BROWNS BEACH HOTELS PLC

BROWNS INVESTMENTS PLC

C

CARGO BOAT DEVELOPMENT COMPANY PLC

CENTRAL INDUSTRIES PLC

CEYLON COLD STORES PLC

CEYLON GRAIN ELEVATORS PLC Hot

CEYLON TEA BROKERS PLC

CEYLON TOBACCO COMPANY PLC

CHEVRON LUBRICANTS LANKA PLC

COLOMBO FORT LAND & BUILDING PLC

COMMERCIAL BANK OF CEYLON PLC

CITRUS LEISURE PLC Hot

COMMERCIAL CREDIT AND FINANCE PLC

D

DANKOTUWA PORCELAIN PLC

DFCC BANK PLC

DIALOG AXIATA PLC

DIALOG FINANCE PLC

DIPPED PRODUCTS PLC

DISTILLERIES COMPANY OF SRI LANKA PLC

DUNAMIS CAPITAL PLC

E

EAST WEST PROPERTIES PLC Hot

EASTERN MERCHANTS PLC

EXPOLANKA HOLDINGS PLC

E-CHANNELLING PLC

F

FIRST CAPITAL HOLDINGS PLC

G

GALADARI HOTELS (LANKA) PLC

GUARDIAN CAPITAL PARTNERS PLC

H

HATTON NATIONAL BANK PLC

HAYLEYS PLC

HAYLEYS FABRIC PLC

HAYLEYS FIBRE PLC Hot

HEMAS HOLDINGS PLC

HIKKADUWA BEACH RESORT PLC

HNB ASSURANCE PLC

HVA FOODS PLC

J

JANASHAKTHI INSURANCE COMPANY PLC

JOHN KEELLS HOLDINGS PLC Hot

JOHN KEELLS HOTELS PLC

L

LANKA ASHOK LEYLAND PLC

LANKA IOC PLC

LANKEM CEYLON PLC

LANKEM DEVELOPMENTS PLC

LAUGFS GAS PLC

LAUGFS POWER LIMITED

LOLC FINANCE PLC

LOLC HOLDINGS PLC

LUCKY LANKA MILK PROCESSING COMPANY PLC

M

MELSTACORP PLC

N

NATIONAL DEVELOPMENT BANK PLC

NATION LANKA FINANCE PLC

NESTLE LANKA PLC

O

ORIENT FINANCE PLC

OVERSEAS REALTY (CEYLON) PLC

P

PANASIAN POWER PLC

PEOPLE'S LEASING & FINANCE PLC

PIRAMAL GLASS CEYLON PLC

PRIME FINANCE PLC

R

RAIGAM WAYAMBA SALTERNS PLC

RENUKA AGRI FOODS PLC

RENUKA CAPITAL PLC

RENUKA HOLDINGS PLC

RICHARD PIERIS AND COMPANY PLC

RICHARD PIERIS EXPORTS PLC Hot

ROYAL CERAMICS PLC

S

SAMPATH BANK PLC

SEYLAN BANK PLC

SIERRA CABLES PLC

SINGHE HOSPITALS PLC Hot

SMB LEASING PLC

SOFTLOGIC HOLDINGS PLC

SOFTLOGIC LIFE INSURANCE PLC

SRI LANKA TELECOM PLC

SWISSTEK (CEYLON) PLC Hot

T

TEEJAY LANKA PLC

TESS AGRO PLC

THREE ACRE FARMS PLC

TOKYO CEMENT COMPANY (LANKA) PLC Hot

U

UNION BANK OF COLOMBO PLC

V

VALLIBEL FINANCE PLC

VALLIBEL ONE PLC Hot

VALLIBEL POWER ERATHNA PLC

W

WASKADUWA BEACH RESORT PLC


You are not connected. Please login or register

FINANCIAL CHRONICLE™ » FINANCIAL CHRONICLE™ » Central Bank to the rescue

Central Bank to the rescue

Go down  Message [Page 1 of 1]

1Central Bank to the rescue Empty Central Bank to the rescue Wed Oct 19, 2016 8:20 am

PrasannaMani

PrasannaMani
Manager - Equity Analytics
Manager - Equity Analytics
[size=32]Central Bank to the rescue[/size]
2016-10-19 00:04:19
     

  • Four financial institutions to be covered
  • Rs. 16.5 bn to be disbursed through cash and government securities
  • Repayment of deposits and investments to  commence beginning  2017 
  • The companies will be dealt with through applicable laws for liquidation when repayment plan legally finalized

The Central Bank of Sri Lanka (CBSL) will dole out nearly Rs. 16.5 billion through cash and government securities for investors and depositors of four fraud-ridden finance companies starting from next year.
According to a CBSL statement, the Monetary Board that governs the monetary sector had approved the plan after concluding that there was no room to revive these companies. “The Monetary Board is of the view that this is the only option that now remains as there are no assets in these companies and no investors have been willing to revive these companies and repay (their) depositors and investors,” it said.
Accordingly, the 11,878 depositors of Standard Credit Finance Ltd., City Finance Corporation Ltd. and Central Investments and Finance PLC that faced bankruptcy in 2008 and 2009 due to fraud and mismanagement would be repaid Rs. 4.87 billion.


Further, repayments will occur for Rs. 3.1 billion in investments linked to government securities of 107 investors in the primary dealer Entrust Securities PLC which had defrauded customers by misusing their funds intended for investments in government securities.
The 24 individuals and companies which had placed unsecured investments of Rs. 8.51 billion in Entrust Securities would be compensated by means of allocating them government securities.
“The Monetary Board approved to repay deposits and investments annually commencing from 2017 over a reasonable period of time with a fair interest rate during this repayment period,” CBSL said.
It added that a repayment plan would be implemented with the managing support of Seylan Bank PLC, in the case of Entrust Securities, and that the four companies would eventually be liquidated.
“The Central Bank will complete the required administrative procedures and communicate details to all those depositors and investors. Once the repayment plan is legally finalized, those companies will be dealt with through applicable laws for liquidation,” CBSL said.


The regulator rebuked the investors and depositors of the 4 companies, saying that investing and depositing funds in such companies should be done after considering the risks and returns as well as the profiles of such organizations, even if they were being regulated by CBSL.
“Even large depositors and investors have been negligent in not undertaking the normal due diligence on risks and returns, despite being sufficiently knowledgeable and skillful to do so,” it said.
The 2016 budget had proposed to make all deposits at finance companies be provided a Central Bank guarantee.

New Enforcement Division to tackle rule breakers
In the face of such lapses in the non-banking financial sector, CBSL said that it would improve its regulatory and supervisory capacities and set up a new Enforcement Division to institute legal action against rule breakers in finance companies.
“The Central Bank will set up a new Enforcement Division in the Department of Supervision of Non-bank Financial Institutions to institute legal action against directors and managers who have been responsible for the frauds and misappropriation of funds and to make every effort to recover such funds from them,” CBSL said.


It added that the Enforcement Division would also monitor all existing finance companies for any fraudulent activities and bring them to book.


CBSL said that it was already acting in concert with law enforcement agencies to bring legal action against the management and directors of Entrust Securities.
“Further, action will be taken to address lapses in the Central Bank and to strengthen regulatory and supervisory mechanisms on a priority basis to ensure the safety and soundness of existing institutions,” it added.

2Central Bank to the rescue Empty Re: Central Bank to the rescue Wed Oct 19, 2016 9:36 am

Chinwi

Chinwi
Associate Director - Equity Analytics
Associate Director - Equity Analytics
"The 24 individuals and companies which had placed unsecured investments of Rs. 8.51 billion in Entrust Securities would be compensated by means of allocating them government securities."

8.5 billion by 24  ?  

Most probably big influential people are in the list and now they are going to pay themselves using public funds.


“Even large depositors and investors have been negligent in not undertaking the normal due diligence on risks and returns, despite being sufficiently knowledgeable and skillful to do so,” it said.

So general public is penalized for the  lazy negligence of those billionaires .

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum