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BSEC penalizes 187 listed firms for rule violations in 2018

  • Published at 11:28 pm January 10th, 2019
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The Bangladesh Securities and Exchange Commission office in Dhaka Syed Zakir Hossain/Dhaka Tribune

In most cases, the violations took place centering the price sensitive information of listed companies, and often involved company directors and their employees, investigations by BSEC found

As many as 187 listed firms were penalized by the Bangladesh Securities and Exchange Commission (BSEC) for violations of securities laws in 2018.

In most cases, the violations took place centering the price sensitive information of listed companies, and often involved company directors and their employees, investigations by BSEC found. Besides, merchant banks, securities houses and investors were also on the list of law offenders.

The offenders were either fined or warned for their breach of securities rules during the period. The rate of law violation cases was around 56%, up from 2017, according to BSEC data.

In 2017, the capital market regulator punished 120 companies for similar types of rule violations.

Citing the types of rule violations, a senior BSEC official said buying and selling of shares by sponsor directors of companies without declarations was one of the major irregularities that occurred last year in the capital market.

Failure to submit and publish financial statements on time are other types of violation, he added.

On various occasions throughout the year, BSEC had asked company directors, managing directors and relevant company secretaries to explain the allegations in hearings held at BSEC Bhaban in Agargaon.

BSEC Executive Director and Spokesperson Md Saifur Rahman told the Dhaka Tribune that the commission was always working to stop any irregularities and protect the interests of investors. 

“We believe that we will be able to identify the people involved in these crimes (securities law violations) and action will be taken against them,” he said.