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The Bangladesh Securities and Exchange Commission (BSEC) has sought explanations from 15 stock brokers for violating its code of conduct.
In line with the letters sent separately to the chief executive officers (CEOs) of the respective brokerage houses, these firms quoted prices of securities at 2 per cent down ceiling based on the previous session’s closing price in between 9:45am and 10:00am on Tuesday.
This sort of activity may be treated as unlawful and with mal-intent, said BSEC letters. As the activities are treated as unlawful, the BSEC sought explanation from these brokers within 48 hours.
The brokerage firms are-, Bank Asia Securities, Sheltech Brokerage, IDLC Securities, Shahed Securities, S & H Equities, LankaBangla Securities, BD Finance Securities, MTB Securities, Mercantile Bank Securities, UCB Stock Brokerage, Globe Securities, Shanta Securities, Island Securities, Quayum Securities, and Midway Securities Limited.
“The share sale was ordered by 15 stock brokerage firms at a 2 per cent discount in violation of the law at the beginning of Tuesday’s trade,” BSEC spokesperson Mohammad Rezaul Karim told The Business Post.
For this reason, the concerned brokerage houses have been instructed to send an explanation about the misdeed within 48 hours, he added.
Earlier on Monday, the BSEC suspended 15 traders or authorized representatives from nine stock brokerage firms for violating its code of conduct.
The traders were guilty of flouting the BSEC code of conduct while dealing in the shares of some companies, according to a BSEC notice issued on Monday.
The suspended traders from nine brokerage houses took refuge in the sale of shares in violation of the securities rules after the start of trading, sources said.
The traders ordered the sale of large sums of shares without quoting any price or ‘market price’ or ‘zero price’ order.
The suspended traders are five from ICB Securities, two from Rashid Investment Services, two from Shyamol Equity Management, and one trader each from Parkway Securities, Quayum Securities, Mercantile Bank Securities, TA Khan Securities, JKC Securities, and Kazi Equities Limited.
According to the securities rules, it is mandatory for a stock investor to send a request in writing for the purchase or sale of shares or securities. The authorized representatives are in charge of executing the investor’s order on the sale of a security or share.
Dhaka stocks slumped for the second day on Monday, with the turnover hitting a fresh one-year low as investors, unnerved by the recent volatility in the market, continued selling shares heavily to avoid further losses.
DSEX, the key index of the Dhaka Stock Exchange, declined by 1.1 per cent, or 72.5 points, to close at 6,482.38 points on Monday after losing 30.1 points in the previous session.
On Tuesday, DSEX, the key index of the Dhaka Stock Exchange (DSE) ended at higher note posting a 47 points or 0.74 per cent gain to close at 6,530 points.
Daily turnover at the DSE increased by 53.65 per cent to Tk600 crore. The miscellaneous sector representing different types of business dominated the turnover chart, covering 15.71 per cent of the total turnover.
