Sylhet Metro City Securities has come under fire of the stock regulator after as an investigation found the brokerage firm involved in embezzling fund from its clients’ accounts.
The Bangladesh Securities and Exchange Commission (BSEC) has asked again the errant brokerage firm to pay back fund to its clients by June this year, said a BSEC statement issued yesterday.
It also asked Chittagong Stock Exchange (CSE) and Central Depository Bangladesh Limited (CDBL) to monitor the progress of the fund payback.
Earlier, the Sylhet Metro City Securities, a brokerage firm at the CSE, failed to return the money within November 30 deadline of last year. The deadline was set by the stock regulator.
A CDBL probe team found that the brokerage house had sold and transferred its clients’ shares without taking their consent, which was a violation of the securities regulation.
The investigation was carried out in response to the clients’ complaints against the brokerage house.
Later, the CSE also carried out another investigation into the irregularities following complaints from clients of the brokerage firm and CDBL’s probe.
Investigations unearthed that some of clients’ shares were missing, which were either sold or transferred from the accounts of the clients breaching securities rules, the CDBL said.
In another development, the BSEC has given consent to convert closed-end ICB AMCL Islamic Mutual Fund into an open-end fund.
Of the total fund size of Tk20 crore, Tk17.87 crore has been kept for unit holders of the previous fund and the remaining Tk2.13 crore for public offer, according to the prospectus.
As of December 31, 2014, net asset value of the fund is Tk17.87 per unit. Earlier, the securities regulator extended the tenure of the mutual fund to May 31, 2015.
