The Bangladesh Securities and Exchange Commission on Tuesday fined Dragon Sweater and Spinning Ltd Tk 5 lakh for providing false information about acquisition of land in the initial public offering document. The regulator also fined Dragon Sweater’s issue manager First Securities Services Ltd Tk 5 lakh for not checking the information before applying to the commission for IPO.
The BSEC at a meeting headed by chairman M Khairul Hossain also suspended issue manager operation of First Securities Services for one year.
The commission also slapped a fine of Tk 5 lakh on the Dhaka Stock Exchange member-broker Global Securities Ltd for violation of various securities rules.
The BSEC in an inspection found that Global Securities provided margin loan facilities to non-marginable shares and also hid margin loan related details to the commission.
It also found that the directors of Global Securities took loan from the house and the customer account of the broker was not maintained properly.
Furthermore, the BSEC found shortfall in customer payable account and that broker issued cheque to other people than its client without any autorisation letter.
The securities regulator on the same meeting also fined Chittagong Stock Exchange member-broker Finvest Securities Tk 2 lakh.
BSEC inspection found that Finvest did not perform any trisection in its dealer account in 2012 and also violated several margin loan related rules.
-With New Age input
