Dawn Securities won’t get shares of demutualised bourse
Bangladesh Securities and Exchange Commission on Tuesday fined a brokerage firm for short selling its clients’ shares and also decided to ask the bourses to take action against short selling by brokers. The BSEC decision came in a regular meeting of the commission presided over by its chairman M Khairul Hossain. The BSEC surveillance software detected short selling by Hillcity Securities, a member of Chittagong Stock Exchange, of 5,000 shares of First Security Islami Bank on May 15, said a BSEC press release.
The matter was sent to the enforcement department and the commission fined Hillcity Securities Tk 1 lakh for violating the securities law after proper investigation, it said.
The BSEC in the same meeting decided that it would ask the Dhaka Stock Exchange and the CSE to stop its broker members from engaging in short selling as such acts were on the rise, said the release.
The BSEC also fined Kabir Securities, a member of
CSE, Tk 5 lakh for violating several securities rules, including keeping the consolidated customers account as fixed reserve and providing margin loan against Z category shares.
The BSEC also decided that Dawn Securities, which remains suspended by the DSE since August 2010, will not be entitled to shares of the demutualised stock exchange and the Trading Right Entitlement Certificate.
The BSEC press release said there were a number of complaints pending against Dawn Securities, including failure to provide the clients with shares and money.
So until the Dawn Securities settle the issues with the clients, the shares of demutualised stock exchange for the broker will be kept in a suspense account, said the BSEC release.
-With New Age input
