Two broker houses fined Tk 1m by BSEC for regulatory breaches

The Bangladesh Securities and Exchange Commission (BSEC) has imposed a total fine of Tk 1 million on two brokerage firms for breaching securities regulations.

The decision was taken at the 950th commission meeting held on Wednesday at the BSEC headquarters in Agargaon, Dhaka, with BSEC Chairman Rashed Maksud in the chair.

According to the meeting’s resolution, Shahjahan Securities Limited has been fined Tk 0.5 million for breaching securities laws, according to UNB news.

Similarly, Dynasty Securities Limited was fined Tk 0.5 million for past deficiencies related to Comparable Company Analysis (CCA), despite having no current shortcomings.

In addition to the penalties on the brokerage firms, the commission has decided to refer Kattali Textile Limited to the Anti-Corruption Commission (ACC) for allegedly misappropriating Tk 250.4 million from its Initial Public Offering (IPO) fund.

The company has been instructed to pay its listing fees to the Dhaka Stock Exchange (DSE) within one month. Failure to comply within the stipulated time will result in a Tk 0.2 million fine for each director, excluding the independent and nominated directors.

The BSEC has approved the draft trust deed and draft investment management agreement for the LankaBangla Fixed Income Fund, a new open-ended mutual fund in the capital market.

Once the trust deed is registered in accordance with the law, the commission will issue a mutual fund certificate under its provisions.

The initial target size of the fund has been set at Tk 250 million, with a face value of Tk 10 per unit.

As per the commission’s information, LankaBangla Asset Management Company Limited will act as the fund manager.

Sandhani Life Insurance Company Limited will serve as the trustee, while Commercial Bank of Ceylon PLC will act as the custodian.

This series of decisions reflect BSEC’s continued efforts to strengthen transparency and discipline in Bangladesh’s capital market.