Bangladesh Securities and Exchange Commission on Tuesday slapped a total of Tk 18 lakh fine on two brokerage houses—Mirror Financial Management Limited and Sohail Securities—for breaching a number of securities rules.
The decision of imposing fine came from a commission meeting presided over by BSEC chairman M Khairul Hossain.
The commission decided to penalise Mirror Financial Management Limited and its chief executive officer Rezaul Alam by a total of 13 lakh in fine after a number of irregularities of the house were detected by an inspection team of BSEC and Dhaka Stock Exchange.
The regulator penalised the MFML with Tk 10 lakh fine as the inspection team found discrepancies between portfolio statements of some clients and DPA6, breaking rule 8(cc) of securities and exchange rules, 1987. The team also found capital short in its consolidated customer account that broke rule 8(A) of the securities rules, 1987.
The watchdog also fined the house with Tk 3 lakhs as the inspection team found that its chief executive director Razaul Alam, an authorised person of a beneficiary owners account named by his wife Taslima Shahnaz provided loan to the account breaching the commission’s directive, 2010.
The commission at the meeting decided to fine Sohail Securities by Tk 5 lakhs as Chittagong Stock Exchange-led routine inspection found a number of irregularities in the brokerage house.
The brokerage house did not prepare books of account and other documents properly and was found capital short in its consolidated customer account.
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