Choppy Ride

The Central Bank on Monday named financial institutions that are not registered with the bank, but continue to raise funds from the public.
The 31 companies named, raise funds not by deposits, but by other means like debentures, commercial paper and promissory notes.rn

rnThe notice comes after the Central Bank named 27 companies in January for mobilising public funds without the Monetary Boards consent.rn

rnThe bank has also filed action against a dozen or so firms named in January, who have refused to let their books be examined.rn

rnAmong Januarys warning list were a few companies that invest in timber plantations. One of these firms even had a public offering on the Colombo Stock Exchange last year.rn

rnHowever, Mondays notice clears firms that invest in timber plantations, as it does not come under the current scope of lquote deposits. rn

rnldblquote Some of these institutions from which inquiries have been made by the Central Bank, have responded that they are not in the business of acce