The Central Bank of Paraguay (BCP) officially announced, through a board resolution, its decision to expel the securities firm 'Negocios Bursátiles Casa de Bolsa S.A. (hereinafter NB Casa de Bolsa)' from the securities market. This measure is taken in accordance with the powers of the central bank as stipulated in Law No. 7162, enacted in 2023.
According to the central bank's official report, this decision is based on technical and legal analyses carried out during the supervision and oversight process by the Superintendency of Securities (Superintendencia de Valores). The analysis revealed that NB Casa de Bolsa repeatedly violated regulations aimed at protecting the market and investors.
The resolution states that NB Casa de Bolsa is currently considered to have ceased its business activities. The central bank stated, "Firstly, this is clearly demonstrated by the fact that the legal entity does not have offices at the address registered with the Superintendency of Securities, nor at other addresses known to the supervisory authority. This is supported by reports and on-site verification records prepared by the supervisory authority and the Paraguayan Stock Exchange (BVPASA)."
Furthermore, the entity failed to submit accounting information to the supervisory authority in a timely manner and has not recorded any transactions in the securities market since mid-2023, further clarifying the cessation of its business activities.
The central bank emphasized, "All these facts lead to the conviction that the entity is not carrying out regulated securities transactions in a professional and customary manner, which is an essential requirement to be considered a broker."
Meanwhile, Agustín Estrada Palomeque, Chairman of NB Casa de Bolsa, had already expressed his intention to resign in October 2023 and, at that time, requested the suspension of the entity's operating license due to a lack of sufficient staff, making operations impossible.
Moreover, the fact that Estrada, who owned 80% of NB Casa de Bolsa's shares, and Ivo Esteban Rojnica were arrested in 2023 on money laundering charges could have indirectly influenced this market expulsion decision. However, the central bank's official announcement does not mention a direct link to the arrests.
This measure by the Central Bank of Paraguay is interpreted as part of its efforts to ensure the soundness of the financial market and protect investors. The expulsion of NB Casa de Bolsa from the market serves as another example highlighting the importance of strengthening the supervision and regulation of the Paraguayan securities market.
[Copyright (c) Global Economic Times. All Rights Reserved.]
