The Chittagong Stock Exchange has suspended the trading rights of Firstlead Securities for an indefinite period due to violation of rules by the brokerage house.
The decision to suspend the Trading Rights Entitlement Certificate of Firstlead Securities was taken in a regulatory committee meeting of the port city bourse on September 11, said CSE officials.
The Sylhet-based brokerage house continued to ‘cheat’ investors after ‘embezzling’ funds from clients’ portfolios from January this year, they said.
The CSE found evidences that the company had sold investors’ shares and grabbed the money without their (investors) consent, said CSE officials.
CSE managing director M Shaifur Rahman Mazumdar told New Age, ‘We have suspended the TREC of FirstLead Securities based on the findings that the brokerage house continued to violate rules and regulations in dealing with clients’ fund.’
‘Preventing the organisation from any further irregularities was among other reasons for the action,’ said Mazumdar.
An official of the brokerage firm said, ‘The house is repaying the investors’ dues and will complete the payment as soon as possible.’
Although a number of letters were issued by the bourse, the brokerage house refrained from giving response and it did not take any measures of paying the investors’ money, a senior CSE official said.
‘Under the regulations, the bourse may cancel the membership of the brokerage house and sell out the licence through bidding to repay the dues of the victims,’ he said.
As the TREC of the brokerage house has been suspended, beneficiary owners’
accountholders will have to open link account with another brokerage house to continue trading.
The CSE imposed the penalty on Firstlead Securities under the Chittagong Stock Exchange (Trading Right Entitlement Certificate), 2013
that allows the bourse to take punitive action against its members or brokerage houses for non-compliance.
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