Colombo bourse says will cancel BoC’s sale of 7.5% in Seylan Bank

The Colombo Stock Exchange (CSE) has said it was cancelling the 1.3 billion rupee deal involving the sale of 13.2 million shares or a 7.5 per cent stake of Seylan Bank by the Bank of Ceylon following a request by the stock broker who executed the transaction, TV new channel News 1st reported this evening (Tuesday).
“The CSE has received a request from the stock broker who executed the transaction involving 13,198,305 shares of Seylan Bank last Friday to cancel the transaction,” Rajeeva Bandaranaike, CEO of the Colombo Stock Exchange, was quoted in the report as saying in a statement issued by him.
“Having received this request the CSE will cancel the trade today,” the statement added.
On Saturday, the Prime Minister ordered the cancellation of the sale which had taken place the day before and had asked the Police to probe the transaction. The buyer had been a foreign investor who purchased the shares at Rs.100 per share against the market rate of Rs. 85.

The government's intervention sent shockwaves in the market with many traders frowning on the move and saying it would trigger negative signals to foreign investors. – ENDS -