Bangladesh Securities and Exchange Commission on Tuesday fined five brokerage houses and investors Tk 28 lakh for violation of different securities rules and irregularities in share transaction.
The BSEC took the decision in a regular commission meeting presided over by its chairman M Khairul Hossain. The five brokerage houses are : Be Rich of CSE, Transcon Securites of DSE, Khurshid Securities of DSE, NBL Securities of DSE and CSE and Gateway Equity Resources of DSE.
Md. Niamul Kabir, an investor under the Be Rich securities house, was fined Tk 2 lakh due to his irregularities in share trading of JMI Syringes and Medical Devices.
As per the BSEC finding, Be Rich violated a BSEC directive by providing margin loans against a share with price earning ratio of 40.
Be Rich also hid information of Niamul Kabir’s share transaction for manipulating share prices and the securities house did not appear before the BSEC for hearing in this regard without showing any reasons, a BSEC release said.
The share prices of JMI Syringes and Medical Devices increased significantly after getting listed with the DSE in August last year.
The share prices of the company increased to Tk 773 in September after trading at Tk 88 in August.
NBL securities was fined Tk 5 lakh as the company provided margin loans facilities to its directors violating BSEC directives and the securities house also violated several other securities rules.
While Gateway Equity Resources, Transcon Securites and Khurshid Securities were fined Tk 10 lakh,
Tk 5 lakh and 3 lakh respectively as the they violated margin rules in providing margin loans to their clients.
-With New Age input
