Talk of reversing the controversial NSB-TFC transaction carried out a fortnight ago could spell doom for the Colombo Bourse, analysts have warned.
“Authorities can fire people who could be responsible for this controversial transaction but reversal must be avoided in the best interest of the Colombo stock market,” they said.
“Technically the transaction cannot be reversed since the sellers have been settled irrespective of whether it was by default. If at all NSB after completing the transaction can divest the stake to another willing buyer,” they added. “This is not a private transaction but an open one carried out in a well-regulated market with various safeguards and inbuilt systems ensuring security and confidence.
Reversal will have serious implications on investor confidence and create a precedence, causing uncertainty on all future trades in the Colombo Bourse,” it was opined.
On 27 April a total of 7,982,705 million voting shares of TFC traded for Rs. 394 million via 17 trades. NSB bought the bulk or 98.5% (7.986 m for Rs. 391) of the total. An existing shareholder Devi Trading bought 1150,050 shares via two trades. Apart of Taprobane Securities which handled 11 trades, Arrenga Capital handled three trades, Bartleet Mallory Stockbrokers (Religare) handled two and NDB Stockbrokers one.
source - www.ft.lk
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