The Central Bank last Friday said it was suspending business activities of primary dealer NatWealth Securities Limited (NWSL) for six months starting from June 1, 2019.
The Monetary Board of the Central Bank had arrived on the decision considering NWSL’s “continuous failure to comply with directions applicable to primary dealers, acting in terms of the regulations specified under the Registered Stocks and Securities Ordinance and the Local Treasury Bills Ordinance.”
The Central Bank said it would take necessary measures to ensure the regulatory action on NWSL did not have a disruptive impact on the government securities market.
“Action will also be taken to facilitate the handling of the interests of the customers and counterparties of NWSL in an orderly manner,” the Central Bank said.
NWSL was established under the Mahapola Higher Education Scholarship Trust Fund.