BSEC investor brokerage stockmarket
The Bangladesh Securities and Exchange Commission (BSEC) has separately fined an investor, a brokerage firm and top officials of two listed companies Tk 51 lakh in total for violating securities rules.
The stock market regulator informed of the regulation enforcement decisions for August through its website recently.
The BSEC fined investor Mohammad Abdul Hai Tk 35 lakh for being involved in a series of transactions using shares of Maksons Spinning Mills Ltd to artificially raise its price.
The BSEC fined Sinha Securities Ltd Tk 5 lakh for several violations, including maintaining several individual and joint beneficiary owner (BO) accounts of some individual clients.
It also maintained customer and BO accounts under the name of some authorised representatives of the company and opened several BO accounts of different clients using some mobile numbers of authorised representatives.
Authorised representatives are the legally approved stock brokers in every brokerage firms.
It also violated rules by making cash payments to some clients of the company, executing margin agreements with some employees and relatives of the employees of the company, and not submitting trade-related documents on time.
The regulator fined five top officials of Toyo Knitex Ltd, previously known as Mithun Knitting, Tk 1 lakh each for failing to submit audited financial statements for fiscal year 2019-20 and for the first three quarters of fiscal year 2020-21.
Of those penalised, Rabeya Khatun is the chairman, Md Rafiqul Haque managing director, Mohamad Shohel Rana company secretary and Md Mahbub-Ul Haque and Md Atiqul Haque directors.
The BSEC also fined five top officials of Toyo Spinning Mills, previously known as Tallu Spinning Mills, Tk 1 lakh each for failing to submit audited financial reports for fiscal year 2019-20 and for the three quarters of fiscal year 2020-21.
Of those penalised, Md Atiqul Haque is the managing director, Md Mahbub-Ul Haque and Md Shafiqul Islam directors, Md Mominur Rahman company secretary and Md Rafiqul Haque chairman.
However, Md Shafiqul Islam’s fine will have to be paid by Bangladesh Development Bank as it had nominated him to represent the bank in the company as a director.
The regulator fined Intech Ltd, a listed company, Tk 1 lakh for breaching securities rules by not submitting financial reports for the third quarter of fiscal year 2020-21.
