Sinha Securities asked to resolve CCA deficit to get its licence back
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The securities regulator instructed the chairman of Sinha Securities to fill deficits in its consolidated customers' account (CCA) by selling her shares of ACME Laboratories.
As per a regulatory order, sponsor and chairman of Sinha Securities Parveen Akhter will have to sell 2.2 million shares from her holdings of shares of ACME Laboratories. She is also a sponsor shareholder of the listed pharmaceutical company.
Ms Akhter herself suggested settling the matter after the Bangladesh Securities and Exchange Commission (BSEC) had taken stringent action in September this year against the brokerage firm for mishandling funds of its clients.
All bank and beneficiary owner's (BO) accounts of directors and managing director of Sinha Securities were frozen over the company's failure to plug the gap in the CCA.
The brokerage firm had a fund deficit of Tk 85.10 million in the CCA until March 7.
CCA, opened with any scheduled bank, is maintained by a stock broker to keep clients' funds for share transactions. Any deficit in the CCA indicates misappropriation of clients' money by the stock broker.
Sinha Securities was asked to settle the deficit by March 19.
It did not comply with the directive and in August there was still a deficit worth Tk 84.9 million in the customers' account of Sinha Securities, according to the Dhaka Stock Exchange (DSE).
Sinha Securities then sought a one-year time to resolve the matter.
The securities regulator rejected the plea and asked the authorities concerned to freeze all bank and BO accounts of the brokerage firm. It also suspended the company's DP (depository licence).
That forced Sinha Securities to come forward to settle the dues through the sale of shares of the chairman.
Pareen Akhter had more than 7.5 million shares of ACME Laboratories until June this year.
The company's share price closed at Tk 73.80 per share on Sunday on the DSE. The market value of 2.2 million shares is Tk 162.8 million if shares are sold at Tk 74 each.
The BSEC gave the broker its go-ahead regarding selling of the shares last week. The decision was made public on Sunday on the DSE website.
"All embargoes imposed on the company's directors and managing director will be removed if the dues are paid through the sale of shares," said BSEC spokesperson Md Rezaul Karim.