New Innings

Capital Alliance Ltd., the newest entrant to the Primary Dealer fraternity, plans to tap the outstation market to promote government debt.
The Central Bank on Tuesday appointed Capital Alliance as its third non-banking primary dealer.rn

rnA primary dealer is a distributor of treasury bills/bonds and participates in the primary and secondary markets of government securities.rn

rnCapital Alliance Chief Executive, Ajith Fernando says a series of awareness building workshops and strategic tie-ups with regional companies are being formed to promote gilt-edge securities in the provinces.rn

rnThe firm plans to introduce a number of new products, which gives investors the same convenience as investing in a commercial banking product.rn

rnCapital Alliance Holdings, its parent company, specialises in debt market transactions. The Group started operations in October 2000 as a fully owned subsidiary of the Asia Capital Group.rn

rnInitially operating as a secondary dealer for government debt, the Group also offers corporate finance activities. rn

rnIn February, the Asia Capital Group subsequently sold its shareholding for Rs. 36 mn to a consortium led by the Jetwing Group and senior staff of Capital Alliance.rn

rnSenior employees currently hold around 30 percent of the debt market firm, with the balance split among a few key investors.rn

rnThe other ten primary dealers registered with Central Bank includes: Ceybank Securities, Ceylinco Shriram, Commercial Bank Primary Dealer, First Capital Treasuries, HNB Securities, HSBC, NSB Fund Management, Peoples Bank, Sampath Surakum and Seylan Asset Management.rn

rnNational Wealth Corp., a fully owned subsidiary of state-run Mahapola Trust Fund, has also applied for a primary dealer licence.rn