May 31, 2019 (LBO) – Central Bank having considered the continuous failure to comply with directions applicable to primary dealers has decided to suspend NatWealth Securities Limited (NWSL) from carrying on the business and activities of a Primary Dealer for a period of six months.
The Central Bank, however, said it will take necessary measures to ensure that this regulatory action does not have a disruptive impact on the Government Securities market.
Action will also be taken to facilitate the handling of the interests of the customers and counterparties of NWSL in an orderly manner.
The decision has been taken at the Monetary Board of the Central Bank at its meeting held yesterday acting in terms of the Regulations made under the Registered Stocks and Securities Ordinance and the Local Treasury Bills Ordinance.
NatWealth Securities Limited is a fully owned subsidiary of National Wealth Corporation Limited established under the Mahapola Trust Fund for the welfare of higher education students.
However, it was revealed at the Presidential Commission of Inquiry that these companies suffered severe losses due to the Central Bank bond scam.