Mohammad Mufazzal
The securities regulator has fined the two bourses in Dhaka and Chittagong Tk 100,000 each for breaching the trading rules for the first time in country's history, sources said.
Dhaka Stock Exchange (DSE) has been fined Tk 0.1 million for miscalculating index along with starting the daily trading before scheduled time.
Chittagong Stock Exchange (CSE) was also penalised Tk 0.1 million for beginning the daily trading before the scheduled time.
The regulator Securities and Exchange Commission (SEC) sent letters Thursday afternoon to both the bourses regarding the penalty.
"The fine was slapped as both the bourses admitted in hearing called by the commission earlier that for a few days they began daily transaction five minutes before the scheduled time," said an SEC official.
"And the DSE also admitted that it also used flawed method in calculating indices," he said.
Nobody from both the bourses was available for comment after repeated attempts to contact them over phone.
The DSE calculated its indices deliberately using flawed method and not in line with international standard.
Currently, the bourse adds points to index from the first trading day of a debutant company.
Moreover, while calculating index it takes into account the face value of a stock, not the premium value, if there is any.
Earlier, the SEC asked the DSE authorities to start calculating index taking points from the second day trading of a debutant company.
The SEC has already issued show-cause notice to the DSE for starting daily trading before scheduled time.
DSE, CSE fined Tk 0.1m each for breaching rules
FE Team | Published: July 23, 2010 00:00:00 | Updated: February 01, 2018 00:00:00
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