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BSEC warns 18 companies for securities law violation

  • Published at 12:20 am December 13th, 2018
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File photo of Bangladesh Securities and Exchange Commission Office in Dhaka Syed Zakir Hossain/Dhaka Tribune

Non-compliance warnings were sent to Confidence Cement Ltd, JMI Syringes & Medical Devices Ltd, Miracle Industries Ltd, Monno Ceramic Industries Ltd, Monno Jute Stafflers Ltd, and Prime Textile Spinning Mills Ltd

The Bangladesh Securities and Exchange Commission (BSEC) in November warned 18 organizations, including six companies and 12 merchant banks and securities houses, for non-compliance of securities laws.

Non-compliance warnings were sent to Confidence Cement Ltd, JMI Syringes & Medical Devices Ltd, Miracle Industries Ltd, Monno Ceramic Industries Ltd, Monno Jute Stafflers Ltd, and Prime Textile Spinning Mills Ltd.

BSEC sources said directors, managing directors and company secretaries of the six companies have been warned against alleged securities rules violations. In most cases, violations were related to price sensitive information.

The BSEC officials also said managing directors of 12 securities houses were warned for alleged securities rules violations. 

The merchant banks and securities houses that received warnings are AM Securities and Financial Service, Azam Securities Ltd, E-Securities Ltd, Habibur Rahman Securities Ltd, Hazrat Amanat Shah Securities Ltd, ICB Securities Trading Company Ltd, Kazi Equities Ltd, Kazi Firoz Rashid Securities Ltd, Md Fakrul Islam Securities Ltd, Remons Investment & Securities Ltd, Shah Mohammad Sagir & Co Ltd, and Unicap Securities Ltd.

Earlier, BSEC asked all directors, managing directors and company secretaries of the securities houses to appear before it to explain the violations.  

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

“The violations are hurting the reputation of the market,” a Dhaka Stock Exchange (DSE) official said, on condition of anonymity. 

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 and contraventions made by them, with a warning to ensure compliance of all securities related laws in future.