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BSEC warns 16 companies for flouting securities laws

  • Published at 10:20 pm March 11th, 2019
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File photo of Bangladesh Securities and Exchange Commission Office in Dhaka Syed Zakir Hossain/Dhaka Tribune

The stock market regulator made the decision on February

The Bangladesh Securities and Exchange Commission (BSEC) last month warned 16 organizations, including three companies and 13 merchant banks and securities houses, for non-compliance of securities laws.

The stock market regulator made the decision on February, following which Enforcement Department of BSEC signed the letters and sent them to all companies.

According to the warning letters, managing directors, CEOs and company secretaries of all 16 companies have been warned for securities rules violations. In most cases, the violations were related to price sensitive information (PSI), which were submitted to the stock market regulator by the companies. 

Previously, BSEC had asked all directors, managing directors, and company secretaries of the companies to appear before the commission to explain the alleged violations. 

The hearing will be held at BSEC Bhaban in Agargaon, Dhaka. 

Non-compliance warnings have been sent to BD Sunlife Securities, Be Rich Ltd, Beximco Securities,  Brac EPL Stock Brokerage, Central Pharmaceuticals, City Brokerage, Conmark Limited, Harun Securities, Prilink Securities, Purabi Securities, Quasem Drycells Ltd, Shahed Securities, Subvalley Securities, Transcon Securities, Treasure Securities, and Western Marine Shipyard.

“These violations influence stock prices and benefit vested quarters,” a BSEC official told the Dhaka Tribune.

A Dhaka Stock Exchange (DSE) official, on condition of anonymity, said these violations are hurting the reputation of the market. 

BSEC said they are considering the apologies from the accused and their promises of compliance in future. 

They have also decided to dispose proceedings against them by placing on record the commission's dissatisfaction on the violations 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 directors and company secretaries from their lawful responsibilities to any person, if affected as a result of the violation, BSEC stated.