SEC probes TFC - NSB deal

Sri Lanka’s Securities and Exchange Commission says a comprehensive investigation is now underway to find out weather any foul play has occurred during the recent NSB – TFC share transaction.

The Commission’s Acting Director General Dr. Hareendra Dissabandara speaking to News360.lk said, the SEC has taken every possible step to accelerate and strengthen the ongoing investigation.

According to him, the regulator has already questioned certain parties who were involved in the controversial deal.

“We are trying to complete the investigation process as soon as possible” added Dissabandara.

The SEC investigation’s initial focus is aimed at finding out weather anything wrong has been done by the capital market players who were engaged in the deal.

Acting DG says, the Broker, Custodian Bank and the CDS, the stakeholders of the said deal, will be investigated by the SEC.

However, he said, it does not have the power to investigate the NSB, as the bank does not come under its purview.

“Behavior of the NSB is not under the purview of SEC, so the decision to invest on the TFC by NSB is under the purview of the Central Bank” added Dissabandara.

The Acting Director General was confident that its investigation will reach the desired outcome without any hindrance.

“We are very objective and whatever the outcome of the investigation, we will proceed with our main objective under the direction of the Commission”, added Dr. Dissabandara.

SEC Investigation commenced, following the Sri Lankan government took steps to cancel the TFC – NSB deal, which saw NSB purchasing 13% of the TFC shares for a sum of Rs. 400 million, which the market analyst said, was way too high.

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