The Financial Express

Address BO account irregularities

FE Report | Published: June 21, 2019 10:56:30 | Updated: June 23, 2019 10:37:19

Address BO account irregularities

The securities regulator has asked the depository participants (DPs) to address the irregularities involving the investors' BO (beneficiary owner's) accounts by July 21.

The directive came at a meeting of the Bangladesh Securities and Exchange Commission (BSEC) on Thursday, as some non-compliances during the opening of BO accounts were detected recently.

"The securities regulator has recently observed that in some cases, the same national ID number, mobile number and bank account were used for opening BO accounts of another person. This is unlawful and unexpected," the BSEC said in a release.

The national ID number, mobile number and bank account of a person cannot be used for opening the BO account of another person, it added.

According to the BSEC decision, the DPs will have to address the irregularities occurred during the opening of BO accounts by July 21.

"The Central Depository Bangladesh Limited (CDBL) will have to submit a compliance report by July 31 next mentioning irregularities occurred during the opening BO accounts," the securities regulator said.

The commission would take necessary measures on the basis of the compliance report, it said.

At Thursday's meeting, the securities regulator also approved the proposal for a Tk 500 million Fixed Rate Corporation Bond to be issued by the HR Textile Mills.

The bond with a term of seven years will be issued to banks, insurance companies, financial institutions, corporate entities, non-resident Bangladeshis and general public through private placements.

The face value of the units of the bond will be Tk 1.0 million each.


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