The securities regulator imposed on Thursday an aggregate amount of penalty worth Tk 4.0 million on two brokerage firms as they opened BO (beneficiary owner) accounts and disbursed margin loans in breach of securities rules.
Officially named Bangladesh Securities and Exchange Commission (BSEC), it slapped the fine on the firms at a meeting at its office in Dhaka city.
BSEC also approved a Tk 7.0 billion non-convertible subordinated bond to be issued by United Commercial Bank (UCB).
The securities regulator decided to issue a warning letter to two merchant banks which failed to raise their paid-up capital to Tk 250 million as per BSEC notification.
As per the DSE findings, Saad Securities breached the securities rules providing margin loans to its directors and their family members and authorised representatives.
The company, having a shortage of fund in its consolidated customer account, also provided margin loans against the non-margin accounts.
As per the BSEC decision, the Saad Securities will have to pay a penalty worth Tk 2.0 million.
Another brokerage firm A N F Management Company will have to pay a fine to the tune of Tk 2.0 million as the company provided margin loans against the accounts opened in the name of dealer, managing director, chief executive officer and their family members and authorised representatives.
This company also falls short of fund in its consolidated customer account.
The tenure of the Tk 7.0 billion non-convertible subordinated bond of United Commercial Bank will be seven years.
The units of the bond will be sold to banks, financial institutions, insurance companies, corporate bodies, asset management companies, mutual funds and high net worth individuals through private placements.
NDB Capital and Cosmopolitan Finance have failed to lift their paid-up capital to Tk 250 million as per the notification of the securities regulator.
BSEC will issue a warning letter to these two merchant banks for breaching its order.
It will also warningly write to United Airways (BD) for not publishing price sensitive information as a board decision. As for this, the decision was taken at a board meeting held on April 23, 2015.
In Thursday's meeting, the securities regulator imposed a penalty worth Tk 0.1 million on BD Autocars too, as it failed to prepare its audited financial statement for the year ended on June 30, 2014 in accordance with account standards.
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