Round 1 - Regulations, Directions, Guidelines impacting the fina

Regarding Treasury Bills, which of the following statements is False?

• If the date of Issue (Friday) is a holiday, then the settlement date will be the following Monday

• If the date of maturity (Friday) is a holiday, then the settlement date will be the following Monday

• A & B is correct

• A.      A & B is incorrect

As per circular on Government Securities Trade Reporting dated 26^th March 2021, all trades are to be reported daily, to the FInNet system on which date?

• Trade Date

• Trade Date+2

• Spot Date

• Settlement Date

As per Section 4.6 of the Registered Stock and Securities Ordinance and local Treasury Bills Ordinance Directions No 01 of 2019 dealing with Repo and Reverse Repos, which of the following statements is True?

• Haircuts less than what are prescribed in the directions are prohibited

• Haircuts higher than what are prescribed in the directions are prohibited

• Haircuts below the minimum levels prescribed in the directions are permitted, if agreed to by both parties in writing

• Haircuts below the minimum levels prescribed are permitted if agreed to by both parties at the time of deal execution

As per section 8.6, phase II, iv) of the Directions on Primary Issuance of Treasury Bills dated 19^th of June 2023, and the recent amendment issued on 11.03.2024, the following statement is True.

• Offers under Phase II will be any aggregate shortfall at Phase I + 10 percent of the aggregate amount offered or LKR 5.0 billion whichever is higher.

• Offers under Phase II will be for ISINs that are fully subscribed only.

• Offers under Phase II will be for ISINs that are fully subscribed only.

• Offers under Phase II will be for ISINs that are fully accepted only.

As per Gazette No 2363/26 of 2023, the Foreign Exchange act No 12 of 2017 was amended, where the limit for outward remittances or issuance of foreign currency for any Sri Lankan with a temporary residence Visa of another country now is:    

• USD 20,000 or equivalent in any other designated currency

• USD 15,000 or equivalent in any other designated currency

• USD 30,000 or equivalent in any other designated currency

• A.      None of the above

The Bank Rate is the rate at which CBSL grants advances to commercial banks for temporary liquidity requirements. As per CBSL circular No. 01 of 2023 issued by the DOD, the bank rate will be the Average Weighted New Deposit Rate plus a certain margin. What is the margin?

• 700 bps

• 400 bps

• 300 bps

• 175 bps

Payment and Settlement Systems Circular No.01 of 2024 prescribes that, for all JustPay transactions, the mobile payment application initiating the transaction shall request a One-Time Password (OTP) for transactions exceeding a certain amount. What is the LKR amount?

• 50,000

• 25,000

• 10,000

• 5,000

Section 16, of Circular No. 01 of 2022 issued by the CBSL’s Department of Domestic Operations state that, in the event of default of an Intra-Day Liquidity Facility (ILF) interest will be charged based on the number of occasions within a 30 day period the facility has been defaulted. What is the rate of interest that will be charged on the first occasion of default?  

• 3% per month

• 36% per annum

• 5% per annum

• 5% per month

Banking act determination No. 01 of 2023, dated 31^st January 2023 added 2 types of assets to the definition of Liquid Assets under the banking act. One was qualifying non-financial corporate debt securities. What was the other?

• Qualifying financial common equity shares

• Qualifying non-financial common equity shares

• Qualifying common equity shares

• Qualifying non-financial preference shares

1.       Based on CBSL’s banking act order No. 01 of 2022 regarding designated currencies for offshore banking business, is the following statement True or False? Thai Baht is a designated foreign currency.

• True

• False