news on EnTrust Securities plc (ESL) on LBO.lk

vic19 · 1 news on EnTrust Securities plc (ESL) on LBO.lk Tue Jan 05, 2016 4:38 am

vic19

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Jan 04, 2015 (LBO) – Sri Lanka’s Central Bank is to take-over Entrust Securities Plc, primary dealer in government securities if the company fails to submit a viable restructuring plan today, Governor Arjuna Mahendran said.
If a re-structuring plan is not submitted by 6 p.m today the company will be taken-over to protect the government securities market and a state bank will be entrusted with the management, he said.
“We want to ensure stability and also confidence in the market and this was the reason we decided to offer the management of Entrust to a government bank.” Mahendran said.
If there is fraud involved action will be taken against the management and other officials in the company.

courtesy LBO.lk

where are you NZ Boy ????

hi fellow members be vigilant/alert .

thanks

visionstar · 2 Re: news on EnTrust Securities plc (ESL) on LBO.lk Tue Jan 05, 2016 10:28 am

visionstar

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Earlier T/Bills and Bonds were issued direct from the Public Debt department of the Central Bank. So they were really risk free. Later they appointed Primary Dealers only through which Government Securities can be bought. Now with what has happened at ESL and with any other dealer for that matter can we say dealing in Government securities are risk free???

vic19 · 3 Re: news on EnTrust Securities plc (ESL) on LBO.lk Tue Jan 05, 2016 11:04 am

vic19

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visionstar wrote:Earlier T/Bills and Bonds were issued direct from the Public Debt department of the Central Bank. So they were really risk free. Later they appointed Primary Dealers only through which Government Securities can be bought. Now with what has happened at ESL and with any other dealer for that matter can we say dealing in Government securities are risk free???

Good Observation .

but Government securities are they call it the safest out of all that are available in any country apart from some rogue African states .there for is not correct to assume that they are riskier.

however any reasonable man could expect the central bank to supervise ESL rigorously as they are manning some public money and in billions and in fact they pay the salaries of state employees.......

has central bank failed in their duty or failed in the decision to award this responsibility to this private firm?

I saw an article very recently , that central bank is planning to move their money from state banks to the private banks to make better returns. I think after this, they had to think very seriously about this decision.

after all credibility at stake.

as they call in " banking terms " any central bank in any country as " Bankers bank " , " Banker of last resort ".

hope past veteran bankers of Sri Lanka will add their feed back to the government for the sake of countries image and credibility other wise we will be a " Banana Rep..... ".

thanks Sad