The Bangladesh Securities and Exchange Commission on Tuesday fined Pubali Bank director Syed Moazzem Hussain Tk 5 lakh for insider trading.
The penalty was slapped at a commission meeting presided over by BSEC chairman M Khairul Hossain.
A BSEC investigation found that the Pubali Bank director, as an insider, bought shares of the bank after knowing the information that the bank would declare 10 per cent stock dividend for the year ending December 31, 2013 that breached the BSEC (prohibition of insider trading) rules 1995.
The investigation also found that Moazzem bought shares through a beneficiary owners account in the name of Prince Corporation Limited without giving prior disclosure to the stock exchanges.
According to the rules, none can make transaction based on unpublished price sensitive information.
The commission also decided to issue a warning to Pubali Bank as the listed bank provided false information regarding the prices of the shares bought by Moazzem. The bank also breached securities laws as they did not provide information when the commission asked it to do.
The BSEC at the meeting also fined First Capital Securities Limited Tk 1 lakh as the brokerage house provided margin loan and fund adjustment facility in trading ‘Z’ category shares. The house also provided margin loan facility in current accounts.
The commission also decided to issue a warning to Globe Securities Limited and Total Communication Limited as they provided fund adjustment facility in purchasing ‘Z’ category shares.
The commission also approved the recruitment of Subhro Kanti Chowdhury as the managing director and chief executive officer of Central Depository Bangladesh Ltd for a two-year term, starting on February 1, 2018.
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