Entrust Investments Ltd, formerly Ceylinco Shriram Asset Management, is phasing out operations as its business is not viable, officials said.
The Company has not renewed its licence which expired on April 30 this year with Sri Lanka's Securities and Exchange Commission (SEC), Executive Director/CEO of the company, A.H.M. Riyaz told The Sunday Times FT. He said that the company is now taking steps to refund the investments of all 132 customers with funds under management amounting to Rs. 95.4 million.
He added that the company has informed the SEC that they will not renew the licence to operate and will be scaling down the operations. The SEC in a newspaper advertisement on Tuesday said Entrust Investments is no longer regulated as a registered investment manager and margin provider by the SEC, with effect from April 30. However, the expiry of the registration shall not affect the firm's commercial agreements relating to the regulated activities entered into with clients before the expiry of registration, the SEC said.
“The board of directors of Entrust Investments Ltd has given a written undertaking to the Commission that all obligations to clients of the company given prior to April 30, 2009, will be honoured by the company,” it said.
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