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BSEC fines Al-Haj Tex’s Shamsul Tk 50 lakh

Staff Correspondent | Published: 00:00, Nov 22,2019

 
 

Capital market regulator Bangladesh Securities and Exchange Commission on Thursday fined Al-Haj Textiles director Shamsul Huda Tk 50 lakh and his brokerage house ANF Management Company Limited Tk 5 lakh for violating securities rules.

The commission slapped the fine at a commission meeting presided over by its chairman M Khairul Hossain, said a BSEC press release.

Shamsul is managing director of ANF Management Company.

Being a director of Al-Haj Textiles, Shamsul sold shares of the company without prior declaration, breaching a number of securities rules.

The BSEC release also said that Shamsul, who is also managing director of ANF Management Company, sold 1.45 lakh shares through the brokerage house without prior declaration.

The brokerage house aided and abetted Shamsul in the malpractice.

Therefore, the commission imposed Tk 5 lakh penalty on ANF Management Company.

Earlier, a BSEC investigation found that Shamsul traded almost 5 lakh shares of Al-Haj Textiles, dragging down the joint shareholding by the company’s directors below mandatory 30 per cent.

Therefore, the commission on September 13 this year froze entire shares held by Shamsul.

In the press release, the commission did not say anything about the embargo.

The market regulator exempted Al-Haj Textiles from punishment as the rule violation allegation against the company was not proved.

The BSEC also withdrew its earlier order that shares of Al-Haj Textiles would be mandatorily traded at the spot market. The shares of the company were sent to the spot market on September 13 this year.

The commission at the meeting also approved amendment proposal of Securities and Exchange Commission (merchant banker and portfolio manager) rules, 1996 after bringing some changes to the rules.

The amended rules allow chief executive officer or managing director of a merchant bank working as issue manager to trade shares of companies other than the companies managed by the entity.

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