Written by Keshala Dias
03 Jul, 2017 | 6:05 pm
After the treasury bond auction on the 27th of February 2015, several Primary Dealers incurred monumental losses.
This happening was revealed during the proceedings of the Presidential Commission of Inquiry today.
Head of Treasuries at Capital Alliance Ltd, Indika Mendis, testified that his organisation never bids through another Primary Dealer and that other Primary Dealers have never bid through them.
The profits of Capital Alliance Ltd for the year ending on 31st March 2015 was Rs. 532 million which dropped to Rs. 57 million for the year ending on 31st March 2016.
Capital Alliance Ltd placed a dummy bid for the controversial auction as they had no interest in investing in a bond beyond 15 years in maturity,
Steffi Fernando, who served in the Front Office of the Public Debt Department noted that it was infact very strange for the Public Debt Department to be told to accept all bids on the day of the controversial auction.
She testified that the Employees Provident Fund never places dummy bids though some Primary Dealers do so, in order to avoid their bids from being accepted.
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