The Colombo Stock Exchange (CSE) has rejected a joint application to buy Ceylinco Stock Brokers (CSB) from by E-W Information Systems (EWIS) and B.P. de Silva Holdings (Pte) Ltd, a source close to CSE said.
“The CSE has rejected the application as a EWIS subsidiary firm, Toppan Forms handles some sensitive work pertaining to the Central Depository Systems (CDS) at the CSE and a letter to this effect has been sent to the related parties,” the source told the Sunday Times FT.
Toppan deals in printing and packaging for CDS. “The CSE had seen this as a clear conflict of interest and the joint application of EWIS with B.P. de Silva was rejected. But the latter has said it will apply on their own,” the source said.
The CSE as a precondition to approve EWIS purchasing a stockbroking firm has said a ‘cooling off’ period of one year is required after terminating the contract between Toppan and CDS, if a fresh application is to be made. Ceylinco Finance PLC said two weeks ago that its board of directors has in principle decided to sell off its controlling shares of CSB, in which it owns 73% of the ordinary shares and 100% of preference shares.
B.P. de Silva has its head office in Singapore where the it was founded as a jewelry firm by a pioneer from Galle over 100 years ago with companies in Sri Lanka which includes a wristwatch agency as well as Tea Tang, a tea export company.