Sri Lanka Equity Forum
Dear Reader,

Registration with the Sri Lanka Equity Forum would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
Sri Lanka Equity Forum

Discussion Forum for Stock Market Investors in Sri Lanka

සිංහල පරිවර්තනය
Submit Post
Submit Post

Latest topics

» Purple shamrock loves dialog
by reyaz Yesterday at 6:55 pm

» MARKET CRASH - GUARANTEED
by Maharaja Yesterday at 1:15 pm

» BLUE HORSE SHOE LOVES SIERRA CABLES
by reyaz Yesterday at 6:06 am

» TECHNICAL ANALYSIS REPORT FOR JUNE
by ruwan326 Thu Jun 21, 2018 2:40 pm

» Market up soon...
by ruwan326 Thu Jun 21, 2018 7:10 am

» what's happening to TKYO.N000?
by hasitha@CSE Wed Jun 20, 2018 1:25 pm

» HVA might give dividend
by anjelo Tue Jun 19, 2018 1:35 pm

» SRI LANKA'S ECONOMY
by samaritan Tue Jun 19, 2018 1:14 pm

» ONE TIME WORLD BEST STOCK MARKET -WHAT HAPPENED?
by dsam Mon Jun 18, 2018 2:21 pm

» PREDICT And WIN..........
by Eugine Fernando Mon Jun 18, 2018 2:12 pm

» TOUGH TIMES AHEAD........!!!!!!!!
by cruiserdude Mon Jun 18, 2018 10:47 am

» Chicken imports to be banned
by TuTanKaman Thu Jun 14, 2018 7:48 am

» VLL - Vidullanka PLC Private Placement
by The Hunter Wed Jun 13, 2018 9:20 pm

» CALF doubled price genuine?
by ruwan326 Wed Jun 13, 2018 10:47 am

» LLUB - foreign exit
by ruwan326 Wed Jun 13, 2018 10:42 am

» Howmuch will the dollar be in one week
by anges Tue Jun 12, 2018 7:21 pm

You are not connected. Please login or register

Sri Lanka Equity Forum » Stock Market Talk » EPF/ETF barred from investing in stocks until cleared of pump-and-dump allegations

EPF/ETF barred from investing in stocks until cleared of pump-and-dump allegations

Go down  Message [Page 1 of 1]

Eugine Fernando


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
The Central Bank (CB) is awaiting relevant authorities to clear the Employee’s Provident Fund (EPF) and Employees’ Trust Fund (ETF) of all charges pertaining to pump and dump allegations in order to restart investing in the Colombo Stock Exchange (CSE), officials said.
The two state funds stopped investing in the CSE following the bad blood during the pump and dump era two years ago, which has pushed the CSE to lobby the Treasury to get the CB to lure both agencies to restart their investments. The two funds dominate the pensions industry and about 92 per cent of these funds are invested in government securities. Only 6.5 per cent of the Rs. 3.1 trillion market capitalisation of the CSE is owned by institutional institutions such as EPF, ETF, insurance companies and unit trusts.
“There are many court cases against the EPF and the ETF and we can only go back to the market after we’re cleared of these misdemeanors,” a CB official told the Business Times on the basis of anonymity.
The two agencies stopped putting cash in the CSE about two years ago. The reason was that it was alleged that the EPF had incurred losses through the purchase of stocks in companies with artificially bloated share prices. The Treasury’s stance is that EPF is not the private fund of a few people to decide on its investments; particularly questionable transactions in the CSE where allegations of ‘pump and dump’ have been made. The Securities and Exchange Commission (SEC) and CSE met with the Treasury officials recently to implore them to reverse this decision last month but despite many presentations they have turned a blind eye.
Analysts say that now’s the right time to consider creating more broadly diversified portfolios subject to the investment constraints to optimise the risk-reward structure of these portfolios. With pension reforms, offering portfolio choices to subscribers, creating investment portfolios based on subscriber preferences and allowing external fund management of portions of pension portfolios will likely help diversify portfolios and enhance returns to subscribers in the long-term, they say.

sheildskye

avatar
Manager - Equity Analytics
Manager - Equity Analytics
Good decision, but there should ideally be a mechanism in place to block traders from dumping.

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum