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BSEC warns 24 companies for flouting securities laws

  • Published at 12:56 am August 13th, 2018
Photo: Syed Zakir Hossain

BSEC made the decision last month in July

The Bangladesh Securities and Exchange Commission (BSEC) has decided to warn 24 companies for non-compliance of securities laws. Among them are two banks, 15 listed companies and seven merchant banks and securities houses. 

BSEC made the decision last month in July. Deputy Director of Enforcement Department of BSEC Mustari Jahan signed the letter sent to all companies.

According to the warning letter, directors, managing directors and company secretaries of 24 companies have been warned for alleged securities rules violations. In most cases, violations are related to price sensitive information (PSI), which were submitted to the stock market regulator by the companies. 

Earlier BSEC asked all directors, managing directors, and company secretaries of the companies to appear before it to explain the allegations. The hearing will be held at BSEC Bhaban in Agargaon. 

Non-compliance warnings have been sent to Shahjalal Islami Bank, Bank Asia, S Alam Cold Rolled Steels, Amara Netwarks, Alif Manufacturing Company, Daika Limited, Dhagon Sweater and Spinning, Familytex (BD) Limited, FAR Chemical Industries, Hakkani Pulp and Paper Mills, Keya Cosmetics, Malsons Spinning Mills, Progati Life Insurance, Shurwid Industries, Sonali Aansh Industries, Stylecraft Ltd and United Airways (BD) Ltd.

The merchant banks and securities houses are: AIBL Capital, Dhanmondi Securities, PFI Securities, Rose Securities, Royel Green Securities, Salta Capital and   Trustee Securities Limited.

BSEC said the commission is considering the apologies of the accused and their promises of compliance in future. They have also decided to dispose off the proceedings against them by placing on record the commission's dissatisfaction on the defaults/contraventions made by them with a warning to ensure compliance of all securities related laws in future.

This disposal does not absolve the company, its directors, managing director and   company secretary from their lawful responsibilities to any person, if affected as a result of the aforesaid default, the BSEC said.