CB gathers info on firm promoting NYSE stocks
It’s no secret that Sri Lanka is more than susceptible to questionable financial transactions, schemes and downright financial scams.
While authorities are warning investors to be more vigilant against online scams and fraud with the rise in digital transactions in the country, many are raising concerns on rupees leaving Sri Lanka – digitally, no less. Thankfully, the Central Bank (CB) is looking at the operations of a company allegedly promoting stocks in the New York Stock Exchange.
A company called Corpus is promoting foreign stock markets promising exponential returns and according to CB officials certain investors in this scheme have lost a ‘significant’ amount of money.
Several telephone calls were received by certain professionals and high networth investors in regard to investing in popular stock markets such as the New York Stock Exchange (NYSE) over the past year.
One such person told the Business Times that it was a ‘ random’ call by a person with a very friendly demeanour who identified himself by the first name only. “It was a sales call asking if I was interested in investing in stocks such as Microsoft, Apple, AstraZeneca etc. He assured that I can make upto 23 per cent return on investment within a week and as an afterthought added ‘the potential to do so is there’,” this individual said.
When trying to find out how the telephone number was obtained, he had got a vague answer. “I was asked the requirement of opening a gmail account and when I replied you need the name and the mobile number, he simply said, ‘there you have the answer’,” he said. “It was very strange how he would allude to obtaining my information like that and when I objected he said that it’s ‘really’ easy to obtain one’s contact information.”
This person, a professional noted that the telemarketer insisted the company is legit and gave its location as the World Trade Centre in Colombo.
Another such person who received a call noted the person at the other end ‘ran down’ the Colombo Stock Exchange (CSE) and extensively talked about the merits of investing in foreign exchanges such as the NYSE.
“They say the CB allows upto US$ 200,000 investments abroad.” However, a senior official at the CB told the Business Times that CB issued this circular in 2017, but after the pandemic several circulars were sent banning this.
The CB has to dig deep into their operation as ‘no transfer of funds’ out of the country is happening. The entire scheme is complex and dubious, especially as the shareholders of the company isn’t revealed.
Again, the writing on the wall is clear. Sri Lanka needs ‘cut and dry’ laws to negate these dubious schemes, offerings and financial crime. Hopefully it’ll be done before more gullibles’ bite the dust.