BSEC halts LR Global’s investment deal with bdnews24.com

Staff Correspondent | Published: 00:00, Oct 14,2019

 
 

The Bangladesh Securities and Exchange on Sunday halted LR Global Bangladesh Asset Management Company Limited’s investment in bdnews24.com, an online news outlet, till the capital market regulator completes assessment of the relevant documents.

The regulatory body made the decision at an emergency commission meeting presided over by its chairman M Khairul Hossain, a BSEC press release said.

The BSEC said that it was drawn attention to a media report that Tk 50 crore would be invested in bdnews24.com by LR Global or from funds managed by the asset manager.

LR Global is an asset management company which is managing six closed-end mutual funds listed on the country’s stock exchanges.

The commission ordered the asset management company to provide details of the investment deal in 24 hours.

The BSEC also asked all parties concerned with the matter to refrain from activities of the investment before the regulator receives all documents and assesses them.

Bdnews24 in a report published in its online portal said that LR Global Bangladesh invested Tk 50 crore in bdnews24 to support the expansion of news automation and creativity of the news outlet.

The commission at the meeting also decided to suspend depository participant certificate of Shah Mohammad Sagir and Company Limited for violation of securities rules.

The brokerage house has Tk 1.98 crore in shortfall in its consolidated customer account.

Besides, investors complained against the brokerage house through the customer complaint address module of the commission.

The BSEC also asked the Dhaka Stock Exchange to form a team to run an inspection over the activities of the brokerage house.

The DSE has already suspended trading by the stockbroker as it failed trading settlement twice in a month.

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