Stock Exchange responds to Wijetilleke’s comments

Saturday, 12 May 2012 01:18 - - {{hitsCtrl.values.hits}}

Right of reply

The Colombo Stock Exchange (CSE) yesterday issued a reply to comments made by former HNB Chairman Rienzie T. Wijetilleke in an article published in the Daily FT titled ‘Wijetilleke backs calls for tough action on NSB-TFC deal’. The full statement is given below:

This statement is made by the CSE in response to the captioned article published in the Daily FT on Friday, 11 May 2012, which contains the views expressed by former HNB Chairman Rienzie T. Wijetilleke regarding the purchase of The Finance PLC (TFC) shares by National Savings Bank (NSB). The CSE regrets the manner in which the said article seeks to misrepresent the functions and duties of the CSE, to the public.

Share transactions are carried out by licensed stock broker firms based on the determinations of buyers and sellers. In this regard, the role of the CSE is to ensure that these transactions are executed on the Automated Trading System (ATS) of the CSE in conformity with the applicable rules.

The ‘order matching’ takes place in a completely automated environment and hence, the CSE cannot intervene in the execution of a particular transaction. In the circumstances, the CSE could not have “suspended the transaction” in question, as claimed by Rienzie Wijetilleke.

Further, the CSE does not “approve” transactions carried out on the ATS of the CSE, as erroneously stated by Rienzie Wijetilleke.

Furthermore, Central Depository Systems (Pvt.) Ltd. (CDS), a fully-owned subsidiary of the CSE, has suspended NSB from carrying out any CDS functions as a CDS participant with effect from 8 May 2012.

Whilst denying all allegations made against the CSE in the captioned article, the CSE assures the public that, in the event of any violation of the CSE/CDS rules, necessary action has been and will continue to be taken by the CSE, as deemed appropriate.