Perpetual suspension won’t affect market
View(s):The Central Bank (CB) decision to suspend suspect dealer Perpetual Treasuries Ltd (PTL) from trading activities won’t impact on the smooth functioning of the money market, dealers said on Friday. The CB’s suspension of PTL is for a six month period effective July 6 and comes more than a month after the Appeal Court dismissed a plea by the aggrieved company challenging an earlier directive by the CB restricting its activities.
CB officials were tight-lipped when asked for further details of Thursday’s ruling which said the banking regulator would take necessary measures to ensure that this regulatory action does not have a disruptive impact on the market. Dealers said Perpetual has stayed away from trading over the past several months. “Other primary dealers are also wary of trading with them,” one dealer said adding that if the company has to settle any payments in the next six months, the CB is likely to step in and sort this out.
PTL is the subject of two investigations: One by the CB for alleged insider trading in two bond issues, and by an ongoing President-appointed commission which is probing the bond scam. The Auditor General has said the loss to the government from both tainted bond deals is in excess of a billion rupees.