BSEC will investigate activities of seven brokerages including Midway
The regulator Bangladesh Securities and Exchange Commission (BSEC) will investigate the activities of seven brokerages, including Rakibur Rahman, a shareholder director of the Dhaka Stock Exchange (DSE), the country’s main capital market. The event will be jointly conducted by Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE) and Central Depository Bangladesh Limited (CDBL). They have been directed to submit the investigation report within the next 20 working days.
According to sources, five of the seven companies are members of the Dhaka Stock Exchange (DSE) and two are members of the Chittagong Stock Exchange (CSEC). DSE members are Sinha Securities, DSE shareholder director. Rakibur Rahman’s companies are Midway Securities, Royal Capital, ANF Management Company and Globe Securities Limited. The two members of CSE are Vanguard Shares and Securities and Kabir Securities Limited.
A senior BSEC official said a number of allegations had been lodged against the seven companies in recent times. It has decided to investigate against the companies because of the complaints of the customers.
On the other hand, in recent times, a few companies in the country’s capital market have made nine-six of the Consolidated Customer Account (CCA) money. As a result, BSEC is in a tough position to protect the interests of investors in the capital market.
Banco Securities Limited’s trading activities on the DSE have been suspended since June 15 on charges of embezzling Tk 66 crore from investors’ consolidated accounts. At the same time, steps have been taken to prevent the director and family members of the broker house from going abroad.
On the other hand, there are allegations against Crest Securities for embezzling Tk 65.32 crore. The ACC is conducting investigation with both the organizations.
Earlier, 48 complaints were lodged against Shah Mohammad Sagir & Company Limited. As a result, BSEC also stopped the activities of this organization. DSE is implementing the decision to pay the customers by selling the company. The company has been bought by Saad Musa, one of the leading industrial groups in the country.
Sunbd/NJ
