Hapless depositors caught in a web of red tape spun by the CSE
View(s):We, the members of the Deposit Protection Society of the Standard Credit Finance Company, are compelled to reveal to the Government and the people of Sri Lanka, the unhappy situation we have been placed in by the Colombo Stock Exchange (CSE) while tryingto get back our hard earned monies which have been held back from us for the past six and a half years.
1. We have had many discussions with the Central Bank of Sri Lanka (CB) and the Managing Agents, Entrust Ltd, of the aforementioned finance company of which we are now voting shareholders owning nearly 30 per cent of its share capital. With our consent the company sought the approval of the CSE in November 2014,to have our shares listed in the Dirsavi Board ,so that we could sell them in the share market, and recoup our long lost monies. The CSE gave their approval on 31-12-2014, but added two riders to their decision, 1) to get a reconfirmation from the CB regarding the granting of a temporary loan to the ailing Finance Company,and 2) the necessity of the Company, to pledge a suitable collateral to the CBSL in order to obtain the said loan.
While rider 2 was almost immediately complied with, due to the regime change at the CB post the January 8th Presidential Election, Rider 1 could not be effectively implemented as it came under a fresh review by the CB. This procedure took a lot of time and finally on 18th September 2015,we were informed that the CB had agreed to grant the much needed loan.This opened the door for further dialogues with the CSE, regarding the long awaited listing of our shares,with the company obtaining the services of a listing agent to act as intermediary in the matter.
2-Thus in late September 2015,the company once again made an application to the CSE, requesting approval for listing of their shares.In this instance, both the CSE,and the SEC subjected the application to a microscopic examination, and came up with a list of eight clarifications in a voluminous seven page letter which they addressed to the applicant company via their listing agent.Of these so called clarifications only one was of much value, namely an audit report for the period 1st April to 30th September 2015, which the company promptly attended to utilising the services of a premier Audit Firm in Sri Lanka,who at the conclusion of their task issued a certificate confirming that the accounts were in order. The other clarifications sought were all of a minor nature,and promptly answered.The replies to these queries made by the CSE were submitted by the applicant company in mid October,
and everybody concerned anticipated the listing of the shares to be done by the 20th November, and our hopes were high.3–But to our utter chagrin, our hopes were dashed into smithereens , when a Senior Executive in the Department of the CSE handling the listing of shares informed us on 17th November 2015,,THAT NO LISTING WILL TAKE PLACE DURING THE MONTH OF NOVEMBER, simply because they had come up with ANOTHER BATCH OF 25 CLARIFICATIONS,which they had once again directed to the applicant company via the listing agent and that were awaiting a reply to their letter.This was also confirmed by the lady heading this department, who very noncommitally told us that the application was “being processed”.
4-The Lady Executive also told us that even after they receive the reply to their second set of queries,which we are reliably informed are mainly lapses of a technical nature which usually occur when humans are called upon to complete lengthy forms, and could be eradicated at a round table discussion if they really wanted to fast track matters.What is most alarming that we were told that if the powers that be at the CSE are still not satisfied with the second set of replies , they could fire off a third set of queries and thereby push further back the date of listing into the New Year,and that they could also ask for a further audit of the company from 1st October to 31st December 2015.
In this never ending web being woven by the CSE,it is we the hapless depositors who have been bruised and battered and suffered agonies over a period of six and a half years in trying to recover our monies, who will continue to bear the brunt of the red tape and nonchalance which we have had to silently undergo.We pray that the President of Sri Lanka, will on reading this, in the name of GOOD GOVERNANCE,step in and put and end to our misery. And we believe that these bureaucrats who were appointed by the last regime are purposely dragging these matters to bring the current government to disrepute in the eyes of the general public .
DISGUSTED DEPOSITORS OF THE STANDARD
CREDIT FINANCE CO.