CB suspends PABC Primary Dealership for six months

Wednesday, 16 August 2017 00:05 - - {{hitsCtrl.values.hits}}

The Monetary Board of the Central Bank, acting in terms of the regulations made under the Registered Stock and Securities Ordinance and the Local Treasury Bills Ordinance, has decided to suspend the business activities of a Primary Dealer of Pan Asia Banking Corporation Plc (PABC) for six months with effect from 10.00 a.m. on 15 August.

This regulatory action is based on the findings of an investigation carried out by the Central Bank related to PABC’s transactions with Perpetual Treasuries Ltd. in the government securities market.

The Central Bank also said this regulatory action does not in any way affect PABC’s ability to carry on the banking activities set out in Schedule II of the Banking Act No. 30 of 1988 as a Licensed Commercial Bank. Accordingly, PABC may continue to deal in government securities to the extent permitted under schedule II of the Banking Act.

Action will also be taken by the Central Bank to safeguard the interests of the customers and counterparties of PABC in the government securities market in an orderly manner.

“The Central Bank wishes to emphasise that this regulatory action restricts PABC’s access to the primary auctions for government securities. It does not affect any of the other activities/services of PABC,” the statement added.