Bangladesh Securities and Exchange Commission (BSEC) has extended deadline by one year for provisioning the unrealised losses against portfolios of merchant banks, stock dealers and their clients.
The new deadline will expire on December 31, 2014, said a statement of the stocks regulator on Tuesday.
The unrealised losses took place due to revaluation of portfolios of the merchant banks’ and stock brokers’ own portfolios, and their clients, said regulator in a statement on Tuesday.
Early this year, the BSEC set December 31, 2013 as deadline for provisioning the unrealised losses of 2012 and 2013.
The time has been deferred considering present market situation and in response to the appeal of the merchant banks and stock dealers, said a BSEC official.
The regulator has detected a notable number of short-selling by the newly set-up Instant Watch Surveillance System software.
BSEC has fined five brokerage firms Tk1.3m for breaching securities rules, including share short-selling.
Short selling is the selling of a stock that the seller doesn’t own. It is prohibited in Bangladesh’s stock markets.
More specifically, a short sale is the sale of a security that is not owned by the seller, but promised to be delivered.
DMR Securities Services, a member of Dhaka Stock Exchange (DSE), faced a fine of Tk300,000 for short-selling 4,000 shares of Prime Textile, 2,000 shares of Sonargaon Textile, 500 shares of Agrani System Ltd and 2,000 shares of Deshbandhu Polymer on May 14 this year.
Tamha Securities, another DSE member, was fined Tk100,000 for short-selling of 10,000 shares of Shahjalal Islami Bank Limited on May 12 and Pioneer Shares & Securities, member of Chittagong Stock Exchange, also counted fine of Tk100,000 for short selling of 2,500 shares of FAS Finance and Investment.
Azam Securities, a DSE member, was fined Tk100,000 for providing margin loan violating securities rules while Be Rich, a CSE member, faced Tk100,000 fine for breaching rules. BSEC fined Delta Spinners Tk1m as it had provided false financial statements of June 2007-2012.