CCTV cameras during bond trades at Central Bank to prevent any malpractices
CCTV cameras are to be installed at the dealing rooms of the Central Bank (CB) during bond trades to prevent any malpractices following the scandal over last year’s tainted bond deal.
These measures were announced by CB Governor Indrajith Coomaraswamy at a media conference on Tuesday where he also told reporters that the Monetary Board has directed the regulator to take necessary action against primary dealer Perpetual Treasuries over the bond scam.
These steps also follows the review of the bank’s onsite examination report of the tainted trader at the board meetings on November 4 and 25.
The action relating to this matter will come to light in the coming weeks, Dr. Coomaraswamy said adding that he cannot divulge or specify the action stipulated by the board due its confidentiality at present.
The CB has also taken measures to streamline the existing process of issuing treasury bonds and has devised a more transparent and hereafter flawless system with the assistance of experts of the International Monetary Fund and the World Bank, Dr Coomaraswamy said adding that the CCTV system will be installed to conduct bond trading in a transparent manner preventing manipulations.
The CB will study similar systems in other countries before the finalisation of the new system of bond actions which will be a hybrid one with competitive and non-competitive bidding.
An electronic trading system is to be established next year minimising manipulations in bond trading, he said adding that a meeting will be held with all primary dealers to provide information before bond auctions and an assurance that the CB will not inflate the bond limit after it is stipulated by the authorities.
The CB has been in the eye of a storm since February 2015 after the irregular deals pertaining to a 30-year bond issue favouring Perpetual Treasuries which rocked the market.
(Bandula)
These measures were announced by CB Governor Indrajith Coomaraswamy at a media conference on Tuesday where he also told reporters that the Monetary Board has directed the regulator to take necessary action against primary dealer Perpetual Treasuries over the bond scam.