5. Replacement of section 9 of the principal enactment

Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

Section 9 of the principal enactment is hereby repealed and the following section is substituted therefor :—

9. (1) The Central Bank, may in writing appoint any primary dealer or other person to be a direct participant who shall be entitled to maintain accounts in respect of Scripless

Treasury Bills as are specified in subsection (2).

(2)

A direct participant shall maintain in a depository referred to in the Monetary Law Act,

Securities Accounts to hold Scripless Treasury

Bills and other scripless securities to which such direct participant has title and to record the interest of such direct participant in Scripless

Treasury Bills and other Scripless securities in accordance with the rules and regulations made under the Monetary Law Act.

(3)

The Central Bank shall pay to a direct participant the maturity proceeds on Scripless

Treasury Bills in respect of which such direct participant is recorded as owner in accounts maintained by a direct participant under subsection (2) on the day such maturity proceeds become payable.

(4)

The Central Bank may inspect and take copies of any books, records or accounts maintained by a direct participant relating to or affecting any Scripless Treasury Bills held in its own account or in the case of a dealer direct participant, with respect to its own account as well as those held in customers’

accounts. The direct participant and its officers, directors, employees, servants and agents shall furnish to the Central Bank all such books, records correspondence or any other document as may be required by the Central Bank and shall provide the Central Bank with all such assistance as it may require to perform the duties imposed on the Central Bank by this Ordinance in respect of issue of Scripless Treasury Bills.

‘Direct

Participants.

The provisions of this section shall apply to any book, record, accounts and correspondence maintained in an electronic form.

(5)

In the event of the Government incurring any liability or making payment of any maturity proceeds with respect to a Scripless

Treasury Bill and where such liability arises or such payment is made in consequence or by reason of any default of a direct participant or a dealer direct participant, such participant shall be liable on demand by the Government, to indemnify the Government with respect to such liability or payment.

(6)

For the purpose of this section

“default” includes —

(a)

any negligence or failure on the part of a direct participant or a dealer direct participant in carrying out of any function or the discharging of any duty assigned to or imposed on, him ,by this Ordinance or by any other written law in relation to any matter dealt with by this

Ordinance ; and

(b)

any act or omission on the part of direct participant or dealer direct participant which constitutes an offence under this

Ordinance or any other written law in relation to any matter dealt with by this

Ordinance —

(i)

whether or not there has been any prosecution in respect of such offence; or

(ii)

whether such act or omission was by the direct participant or the dealer direct participant or by any director, officer, employee or agent of such direct participant or dealer direct participant.’.

Read on from s 6