Questions are raised in the capital market about the recent behaviour of the Employees’ Provident Fund (EPF) pertaining to a blue-chip company with many pointing fingers at the state pension fund for manipulating the share market. ”The EPF has called more than four stockbrokers and placed ‘sell’ orders on John Keells Holdings (JKH) in a bid to bring its price down,” an analyst said. According to brokers the EPF is eyeing a larger parcel at a lower price. “They quoted Rs. 140 per share for a large block, but didn’t specify the quantity. This selling down is actually dumping and will bring the market down which shouldn’t happen.”
Another analyst pointed out that this was tantamount to manipulation. “The EPF, the largest fund in South Asia is not the private fund of a few people who decide on its investments; particularly questionable transactions in the CSE where allegations of ‘pump and dump’ have been made.”
The new plan of the present government is to set up a public trust to independently manage the Employees Trust Fund and EPF by amalgamating them to create a new national pension fund that will have a combined worth of Rs. 1.7 trillion.
Another analyst pointed out that this was tantamount to manipulation. “The EPF, the largest fund in South Asia is not the private fund of a few people who decide on its investments; particularly questionable transactions in the CSE where allegations of ‘pump and dump’ have been made.”
The new plan of the present government is to set up a public trust to independently manage the Employees Trust Fund and EPF by amalgamating them to create a new national pension fund that will have a combined worth of Rs. 1.7 trillion.
www.sundaytimes.lk
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