The Bangladesh Securities and Exchange Commission on Tuesday slapped a fine of Tk 4 lakh on Mercantile Bank chairman AKM Shaheed Reza for breaching securities law.
The capital market regulator imposed the penalty at a commission meeting presided over by its chairman M Khairul Hossain.
Shaheed was fined for buying and selling shares of Mercantile Bank without any declaration when he was a director of the bank in June,
2014, said a BSEC press release.
BSEC said that an investigation by the Dhaka Stock Exchange found the rules violation by Shaheed with trading shares of his bank on June 1-4 in
2014 without prior declaration.
The BSEC also found the DSE probe authentic.
As per the securities rules, every sponsor shareholder or director or placement holder of a company listed with any stock exchange shall simultaneously submit a written report to the commission and the stock exchange about his intention to buy or sell the shares held by him or her in that company.
The regulator at the meeting also decided to penalise Habibur Rahman Securities by Tk 1 lakh, Stock and Bond Securities by Tk 1 lakh and Wifang Securities by Tk 3 lakh for breaking a number of securities rules.
The three houses were found guilty for providing margin loan facility to the non-marginable Z-category securities. Wifang Securities also gave fund adjustment facility to the Z-category customers.
Habibur Rahman Securities provided margin loan facility to the current accounts while Stock Bond Securities gave loan facility without margin contract, violating securities laws.
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